Performance Appraisal In The Workplace
Performance appraisal is one of the critical human resource practices administered in managing organizations (Jafari, M., Bourouni, A., & Amiri, H, 2009) to identify, rewarding, and discipline employees according to performance; developing programs and other management activities that are important in human resource management. It is perceived to be critical in leveraging human capital towards the desired direction (Takeuchi, R., Lepak, P., Wang, H., & Takeuchi, K, 2007).
Appraisals generally are utilized mainly for two main purposes; 1). Development and 2). Evaluation (Maund, 2001). Developmental uses are administered to identify employees’ needs, give feedback, determine assignments and transfers, and point out employees’ strengths and weaknesses. Evaluative uses entail identifying performance, promotion/demotion decisions, recognizing each worker's performance, wage management and retention or termination determinations. Despite the fact that the evaluations have benefits and they are very useful as a management tool in the workplace. There are problems which distort its usefulness. The problems with appraisals hamper their utility in the workplace and sometimes impacts workers’ attitudes, reactions and behaviour and performance in the workplace negatively (Walsh, 2003).
Workers do not appreciate the processes of human resource activities all the time (Whitener, 2001). Administrators must have the knowledge of the employees’ feelings, which results in their reactions which could be positive or negative towards evaluations. Workers need an accurate and precise evaluation mechanism that will provide feedback as regards their performance. The mechanism will only be effective if it is viewed as fair and reflective of the actual individual’s performance (Suliman, 2007). Employees are believed to show a positive reaction towards their jobs if they perceive the fair treatment of the appraisal system in the workplace (Cook and Crossman, 2004).
According to Gary (2003), the
graphic rating scale method usually comprises a list of personality traits. A
rater will be required to indicate on a numerical scale the degree to which the
individual being appraised possesses these traits. This is the simplest and the
most commonly used method of performance appraisal. It lists personality traits
and a range of performance values (on a scale of unsatisfactory to outstanding)
for each trait. The supervisor rates each employee by checking or circling each
score, which best describes the employee’s trait. It is to be done numerically
on a scale of 1, 2, 3, 4, and 5.
Figure 01 -
Elements of Appraisal Effectiveness
Source: Piggot-Irvine, 2003
Figure 01 shows the
essential criteria for effective appraisal, that for performance appraisal to
be effective the system should be confidential, informative, have clear
guidelines and be educative. In order to have an effective appraisal, the
process must be embedded completely throughout the organization where the
values shape part of the fabric of the everyday life of the workplace
(Piggot-Irvine, 2003).
All effective performance
appraisals include elements such as linking appraisal to rewards, the
supervisor and employee working together to identify goals, performance goals
clearly defined, feedback given to the appraiser on their effectiveness and
compliance with legal requirements (Rankin & Kleiner, 1988).
References:
Cook, J., & Crossman, A. 2004, “Satisfaction with performance appraisal systems” A study of role perceptions. Journal of Managerial Psychology, 19(5), 526-41
Gary, D. 2003. “Human Resource Management” (9th ed.). New Delhi: Prentice Hall of India. Odhiambo, (2005), Education Administration. Journal, Emerald Group Publishing Limited
Jafari, M., Bourouni, A., Amiri, R.H. 2009, “A New Framework for Selection of the Best Performance Appraisal Method”, European Journal of Social Sciences – Volume 7, Number 3
Maund, L., 2001, “An Introduction to Human Resource Management”, Theory and Practice, Palgrave, New York
Suliman, A. M. T. 2007, “Links between justice, satisfaction and performance in the workplace”, a survey in the UAE and Arabic context, Journal of Management Development, 26(4), 294-311
Piggot-Irvine, E. 2003, ‘Key features of appraisal effectiveness’, The International Journal of Educational Management, Vol. 17(4/5), p. 170-72
Rankin, G, & Kleiner, B. 1988, ‘Effective Performance Appraisal’, Industrial Management and Data Systems, Vol. 88 (1/2).
Takeuchi, R., Lepak, D. P., Wang, H., & Takeuchi, K. 2007, “An empirical examination of the mechanisms mediating between high performance work systems and the performance of Japane”
Walsh, M. B. 2003, “Perceived fairness of and satisfaction with employee performance appraisal”, Doctoral dissertation, Louisiana State University
Whitener, E. M, 2001, “Do high commitment human resource practices affect employee commitment” A cross-level analysis using hierarchical linear modeling. Journal of Management, 27(5), p. 515-35
Good content. A performance appraisal system plays an important role in the development of an organization and Employee’s growth. Every organization has their own way of appraising the employees. Performance Appraisal is one of the oldest, natural and worldwide practices of Management. But anyhow it has few drawbacks. Biasness of raters judgment and the rating accuracy are the few threats that affect the validity of the performance appraisal (Dijk and Michal, 2015).
ReplyDeleteThank you for your comment. However, Taylor et al (1995) described the results of a study where a performance-appraisal system was designed to ensure that due-process components were embedded in the evaluation processes. Their methodology involved randomly assigning employee-manager pairs to train for and implement the due-process system or to continue using the appraisal system as it was. Results showed that those employees evaluated by managers trained in the due-process system displayed significantly more favourable reactions along a variety of measures (e.g. perceived system fairness, appraisal accuracy, and attitudes toward the system). An interesting finding was that the due-process employees received significantly lower evaluations than control employees, suggesting that such an intervention might be helpful in controlling rating inflation.
DeleteAgreed with the content. In addition, the word "performance appraisal" refers to the routine evaluation of an employee's work performance and overall contribution to the firm. A performance assessment, also known as an annual review, performance review or evaluation, or employee appraisal, assesses an employee's abilities, achievements, and progress, or lack thereof (Silverman & Cavanaugh, 2015).
ReplyDeleteThank you for your comments. Traditional treatments of the relative fairness of performance ratings and appraisal systems focus on whether subgroups differ significantly and meaningfully on performance ratings themselves. However, consistent with contemporary treatments of fairness in selection contexts (Arvey & Sackett 1993), researchers are beginning to examine the relative fairness of the appraisal process itself via concepts of due-process and procedural justice. Folger et al (1992) developed three characteristics of a due-process appraisal system. The first is that “adequate notice” be given such that employing organizations publish, distribute, and explain performance evaluation standards and processes. The second is that a “fair hearing” should be provided with a formal review meeting in which an employee is informed of his/her evaluation. A third characteristic is that raters apply performance standards consistently across employees, without distortion by external pressure, corruption, or personal biases (“judgment based on evidence”).
DeleteGood content Derrick and adding further, HRM aim at constantly the competency requirements of different individual to perform the job assigned to them, effectively and provides opportunities for developing these competencies. Performance appraisal is an integral part of HRM and HRM deals with personnel is people. “People” is the important and valuable resource that every organization or institution has in the form of its employees. (Dr.S.Jansirani, Mr. R.Hatrikrishnan, Mrs.D.Jaya kani, & Ms.A.Saisathya, 2013)Performance appraisal is often regarded as the most critical function of human resource management (Selvarajan R., 2008).
ReplyDeleteA stronger emphasis on employee development is reflected in the extent to which appraisees have increased responsibility for steering performance appraisal and employers are also placing more emphasis on values, using performance appraisal to highlight the behaviours expected of staff (Armstrong and Baron, 2005. Regular appraisals are often utilized to bring a degree of formalization to the process of performance management. The most important characteristics of performance measures are their validity and reliability (Mabey, 1998).
DeleteGreat article, Further i want add the company could determine if a worker merits praise and reward or should return to training and development in the area where changes are needed. If certain criteria were met, employee motivation would increase: The people think there is a significant connection between successful outcomes and high appraiser ratings., And ‘Performance appraisals are indispensable for the effective supervision and costing of staff’ (Jabeen, 2011).
ReplyDeleteEmployer expectations about performance requirements have increased greatly and employees are required to meet specified objectives and to demonstrate required organizational behaviours and values in achieving their targets. In these circumstances, performance appraisals become far more than just an annual ritual and are viewed as a key lever to enhance organizational performance. West (2002), in their study of hospitals, suggested that effective performance appraisals by providing role clarity, identifying training needs, and making staff feel valued, led to improved patient care and contributed to reductions in patient mortality.
DeleteGood content Derrick, According to Aguinis (2012) Traditional performance appraisal tends to focus on employees’ deficiencies in their job performance, knowledge, and skills, and how to remediate these deficiencies. As an alternative, strengths-based performance appraisal focuses on identifying, appreciating, and promoting the future use and development of employee strengths and can therefore be seen as a powerful positive organizational intervention (Woerkom & Kroon, 2020).
ReplyDeleteToday, the term performance management as an overall description of a process of performance planning and review conducted by managers and individuals has largely replaced the term performance appraisal. The latter has often been relegated to a description of the performance assessment and rating aspect of performance management. Coens and Jenkins (2002) delivered the following judgement: ‘Throughout our work lives, most of us have struggled with performance appraisal. No matter how many times we redesign it, retrain the supervisors, or give it a new name, it never comes out right. Again and again, we see supervisors procrastinate or just go through the motions, with little taken to heart. And the supervisors who do take it to heart and give it their best mostly meet disappointment’.
DeleteAgree with your blog post content Derrick. Furthermore, employee performance reviews are frequently carried out in a timely and efficient manner thanks to organizational policies and procedures, which outline the steps to take in determining and meeting employees' developmental needs (Nassazi,2013). Recognizing the workforce's present skills situation is crucial to the broader viewpoint of evaluating employee performance. To evaluate the value of the employees to the company in such a situation, diversified, accurate, and unbiased data must be gathered (Shaout & Yousif, 2014).
ReplyDeleteCompetencies in performance management are used to ensure that performance reviews do not simply focus on outcomes but also consider the behavioural aspects of how the work is carried out that determine those outcomes. Performance reviews conducted on this basis are used to inform personal improvement and development plans and learning programmes (Armstrong 20090. Care needs to be exercised to ensure that definitions are clear and unambiguous and that they will serve their intended purpose. If, for example, one of the purposes is to provide criteria for conducting performance reviews, then it is necessary to be certain that the way the competency is defined, together with supporting examples, will enable fair assessments to be made (Mirabile 1998).
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