Introduction Define Performance Appraisal/Explain Performance Appraisal Performance Management “aims to improve organisational, functional, unit and individual performance by linking the objectives of each” Stone (2013). In order to gain this control, information and a formal review process is required in order to determine individual employee performance. This is when Performance Appraisal is then utilised. Stone (2013) defines performance appraisal as an overall measure of organisational effectiveness. He describes performance appraisal as being “concerned with determining how well employees are doing their job, communicating that information to employees, agreeing on new objectives and establishing a plan for performance improvement”. In an organisational context performance appraisal aims to improve the effectiveness of individual employees which will in turn result in improved business performance and promote the achievement of its objectives. Stone (2013) provides two main objectives of performance appraisal systems as “to provide information for making personnel decisions involving compensation, promotion, discipline or termination” and “to provide feedback to subordinates for improving performance. Types of Appraisal The main types of performance appraisal systems as identified by Prowse (2009) include Behaviourally Anchored Rating Scales (BARS), Graphic Rating Scales, Behavioural Observation Scales (BOS). Stone (2013) goes on to include Ranking Systems
Development of a performance appraisal system that is effective in a human service organization is of benefit for the organization and the employees. For a performance appraisal system to be effective, the system has to be strategic, designed to fit the specific needs of the organization, non-discriminatory, non-bias, with correct implementation and administration. Many different components, must to be incorporated to make this type of system beneficial for all who use it, and all who are evaluated by the system.
An appraisal is one of the most commonly used methods of formal assessment and is used to evaluate and assess the performance of an employee against agreed targets and objectives, with the aim of improving employee performance. Where an employee has been able to achieve their targets, the appraisal can be used to recognise successes. This often helps to increase an employee’s confidence and motivation and can lead to better organisational performance. Many organisations will use the outcomes of an appraisal to identify potential candidates for promotions or even an increase in pay. At the same time, an appraisal meeting may include discussions on underperformance, identifying why this has occurred and how this can be avoided in the future.
On the other hand, poor performance, or mediocre performance may lead to negative appraisals and consequences, including job termination or withholding of bonuses, awards, and promotions. Performance appraisals are a systemic means of ensuring quality of work performance, and thus achieving the strategic objectives and advancing the goals of the organization. These performance appraisals, in order to be effective, must be applied in a uniform, objective, fair and consistent manner over time. In addition, the expectations of the performance appraisal must be clearly understood and agreed upon by the supervisor and the employee. Objectivity and fairness in the appraisal system build trust in the organization as well as high morale among employees.
An effective performance appraisal system strives for as much precision in defining and measuring performance dimensions as is feasible. Some of the major problems with the Darby appraisal system are:
Performance Management Within the Workplace The basis of the mainstream of performance appraisals within the modern workplace is one person (a manager or executive) rating one more, an intrinsically individual process. There are distinction such as 360 degree appraisals that include the judgment of others such as clientele and peers/colleagues in the process but it is the action of one person transitory judgment upon another that is subjective in nature and the root cause of many of the problems encountered in the research associated with performance appraisals. Performance appraisals are of importance to the organisation, as they often provide the only measure of an individual's contribution and
One of many ways in order to measure and achieve organisational goals is through performance management and appraisal. According to Armstrong and Baron (2004) performance management is 'a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved '. Executed correctly, performance management can be an impressive method to target involvement and contribution, therefore, helping to achieve organisational goals. However, if line managers and HR professionals do not carry out their correct roles and responsibilities, it can lead to disengaged staff members, encouragement of unproductive tasks, wasted time and effort, and poor decisions. This essay will critically discuss, further, how performance management and appraisal contributes in achieving organisational goals and the importance of continuous performance management.
Although Performance Management evolved from performance appraisals few decades ago, most literature still intensely focuses on performance appraisals when addressing performance management.
Most managers that I know, get a tight feeling in their stomach every time they are reminded that they need to begin working on their performance reviews. Depending on how large your team is, completing performance reviews can be a daunting task. Hopefully you have been good at recording your employees’ individual successes and failures over the course of the year. Performance appraisals serve many purposes within an organization. Answering the questions below will help us understand why they are a standard at most companies.
The definition of the term ‘performance management’ varies in different literatures. As Hutchinson(2013) summed up, combined with Den Harton’s theory(2004), it is a continuous process which links individual and team objectives with organizational goals by measure and improve employee’s skill and performance. According to Armstrong (2012), human resource management aims at making sure the organization has the most talented, skilled and engaged people in order to attain its goals. In this context, performance management is one staple practice helping managers identifying and retaining most competent employees as well as correcting poor performance.
There are a number of ways that performance appraisal systems can improve value to the organization. The appraisal system's role within the organization is to help orient workers towards specific performance objectives and then reward them when they meet those objectives. An effective performance appraisal system will therefore improve the performance of the organization, generate higher profits and increase the overall value of the organization.
According to Zweig (1991), performance appraisal instruments are tools that are used to measure the performance of employees in the workplace. They are used to put employees up against one another or a predetermined standard, and the appraiser is required to give an evaluation. Practical and effective performance appraisal instruments are drafted when the company has already clarified its philosophy and performance management system. It is also imperative that the performance appraisal instruments are calculated accurately, and that the supervisors are empowered to produce
What exactly are the consequences of performance appraisal in organisations and how does it contribute to organisational or individual performance? 2000 words
The optimal results of a well-prepared and a well-delivered performance appraisal can be measured by focusing upon three particular dimensions. These dimensions comprise determination of performance problems,
Performance appraisals act as proof for pay increases or aids in making decisions for terminations. Well-designed performance appraisals can start dialogue between supervisors, direct reports, and coworkers that may result in positive outcomes for the individuals and the business. Businesses can choose from several types of performance appraisals. Most companies use the traditional methods of evaluating employees which takes place one-on-one between supervisors and subordinates. Another commonly used type of appraisal involves management by objectives (MBO), where employees and managers set objectives at the beginning of the evaluation period and assess how well the employees meet those objectives at the end of the period. Others include 360 degree feedback appraisals, performance ranking, behavioral observation scales, graphic rating scales and several other ranking methods that can be used.
At the beginning of this course, I identified performance management and appraising employee performance as two topics of interest to me. The connection between these two topics was evident to me from the start; however I can now see how they connect too many other aspects of my role as a supervisor. At the onset of this course, an increase in negative employee behaviour was my main reason for selecting performance management, more specifically discipline, as an area that could be improved on. However, I failed to see how my weaknesses and the organizations lack of policy were contributing to the employee’s discontent. My first goal was to create and implement a discipline policy and, using the knowledge gained through this course as