Performance Appraisal
Armstrong (2006) describes the
role of the performance appraisal as a tool for looking forward to what needs
to be done by people in the organization in order to achieve the purpose of the
job to meet new challenges (Armstrong, 2006). Personnel assessment helps organizations
identify the individual competency levels of employees. And through the outcome
of this process, the organization could decide whether an employee deserves
reward and recognition or needs to be placed back in training and development
in the relevant area where improvements are required. ‘Appraisal is an
effective instrument in human resources management, which if performed
correctly and logically, the organization will get its personnel to achieve
their interests’ (Rezghi, 2000).
‘Human resources are arguably
the most valuable assets of any organization and obviously constitute the
largest corporate investment’ (Roslender et al., 2009). It is imperative that
the organization concentrate on these assets to make them more productive to
achieve corporate goals. Hence, the personnel assessment plays a major role in
the process of enhancement of employees’ job performance. ‘Performance
appraisals are indispensable for the effective supervision and costing of
staff’ (Jabeen, 2011). However, the effectiveness of the appraisal depends on
the equitability of the process. For example, the head of a department of the
organization where I worked previously, would rate an employee high for the sole
reason of personal favour rendered to the department head by the particular employee.
This breach of a psychological contract could easily affect the performance and
commitment of the rest of the employees of the department.
Motivation
‘Motivation in firms is absolutely important and necessary because it could change the behaviour of employees in positive ways’ (Aarabi et al., 2013). Through motivation, employees’ attitudes could be influenced to enhance productivity. Brayfield and Crockett (1955) believed that there is little relationship between the two variables of motivational factors and job performance (Brayfield and Crockett, 1995). Aarabi et al. (2013) explain motivational factors which lead to job performance as following (Aarabi et al., 2013).
Independent variable Dependent variable
(Motivational factors)
- Payment
- Job Security
- Promotion Job Performance
- Freedom
- Friendly Environment
- Training
Employee motivation will be higher if a set of conditions were accomplished: the individuals see a strong relationship between results and good appraisers’ ratings; individuals recognize a strong relationship between ratings and outcomes/rewards; the outcomes/rewards are important for employees as they see a strong relationship between their level and the anticipated level of need for satisfaction (Pritchard & Diazgranados, 2008). Therefore, organizations need to create the right conditions as motivated employees are productive and bring a positive vibe to the workplace.
Job
performance
DeNisi & Pritchard (2006)
highlight that employee performance appraisal should be redirected towards
performance improvement within a motivational framework helping organizations
to identify methods to use employee performance appraisal as a means to improve
employee performance. The personnel assessment
could also be used as a tool to encourage improved job performance while it
serves the primary objective. Thus, the SMART key performance indicators for
employees are more useful to an organization to identify and utilize its valued
assets of human resources to achieve its corporate goals. According to Campbell (1999), performance is a set of behaviours, the implementation of which is relevant to achieving the goals of a company or organizations.
References
Aarabi, M.S., Subramaniam, I.D. and Akeel, A.B. (2013).
Relationship between motivational factors and job performance of employees in
Malaysian Service Industry, Asian Social Science, vol. 9 No. 9.
Aarabi, M.S., Subramaniam, I.D.
and Akeel, A.B. (2013). Figure 1, Theoretical framework for Relationship
between motivational factors and job performance of employees in Malaysian
Service Industry, Asian Social Science, vol. 9 No. 9.
Armstrong, M., (2006). Blending formal and informal
approaches to management training, McGraw Hill Book Co., New York
Campbell, J. P. (1999). The definition and measurement of
performance in the new age. In D. R. Ilgen & E. D. Pulakos (Eds.), The
changing nature of performance. Implications for staffing, motivation, and
development (pp. 399–429). San Francisco: Jossey-Bass.
DeNisi, A. S., & Pritchard, R. D., (2006). Performance
appraisal, performance management and improving individual performance: a
motivational framework. Management and Organization Review, 2(2),
253-277.
Brayfield, A. H., & Crockett, W. H. (1955). Employee
attitudes and employee performance, Psychological bulletin, 52(5), pp 396-424.
Jabeen, M., (2011). Impact of performance appraisal on
employees motivation. European Journal of Business and management
Pritchard, R. D., & Diazgranados, D. (2008). Motivation
and performance management, Performance Management Systems, pp. 40-54.
Roslender, R., Kahn, H., & Stevenson, J., (2009).
Recognizing workforce health as a key organisational asset: a study of
current thinking and practice. The Institute of Chartered Accountants of
Scotland CA House, 21 Haymarket Yards Edinburgh, UK.
Rezghi, R.T., (2000). Performance evaluation system, Tadbir
Publication, No, 114.
Agreed with the content. In addition, The official documentation of a person's accomplishments in relation to established objectives is called a performance appraisal, often referred to as a performance review. It is a part of the PMS. The system has evolved into a crucial management tool for enterprises today. One may argue that overseeing employees' performance is just as crucial as any other task that managers complete during the year. According to Grote (2002), performance reviews are a formal management technique that aid in assessing an employee's level of performance.
ReplyDeleteThank you for your comment Prabuddha. According to Grote (2002), an effective performance appraisal system is the primary mechanism that allows organisations to make critically important decisions correctly (Grote, 2002). Therefore, the use of SMART objectives for performance appraisal would help management with accurate identification.
DeleteGood content to read and further, Waldman & Spangler (1989) also developed an integrated model of job performance focusing on characteristics of the individual (e.g. experience, ability), outcomes (e.g. feedback, job security), and the immediate work environment. Campbell et al (1996) reviewed and discussed other models of job performance (e.g. the “classical” general factor model, the critical deficiency model) but again affirmed their belief that performance is best understood as multifactor in nature.
ReplyDeleteThank you for your comment Derrick. According to DeNisi and Murphy (2017), a personal appraisal is intended to improve individual performance and align individual objectives and behaviours with the organization’s strategic goals. Therefore, an organisation need to ensure that it clearly articulates its expectations from employees and provide feedback on performance to benefit from an effective personal appraisal.
DeletePerformance evaluation/appraisal is the continuous process of obtaining, examining and recording information about the comparative worth of an worker. The focus of the performance evaluation is measuring and enlightening the actual performance of the employee and also the future potential of the employee. Performance appraisal and evaluation is identified as the identification, Measurement and management of human performance in organizations and provides individuals with useful feedback and coaches them to higher levels of Performance (Gomez-Mejia, 2007)
ReplyDeleteThank you for your comment Jeyarajasingam. CIPD (2014), argues that organisations should evaluate their employees on the outcomes they achieve as compared to an individual performance target. Thus, employees can decide how, where, and when to do their work on their own and this would encourage their innovative work behaviour. Therefore, application of this performance appraisal criteria could be more effective.
DeleteAgreed. Furthermore, Dulewicz (1989) see performance appraisals as a planned and intermittent interaction between the employee and its manager/supervisor. However, Lawerence (2014) sees performance appraisals as a means of assessing the productivity of its employees in order to understand the an employees strength and weaknesses in a manner to boost efficiency.
ReplyDeleteGreat work, 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 Sarasi. Pulakos and O’Leary (2011), point out that organisations typically evaluate employees’ exhibited skills by comparing them to a predefined set of skills associated with the employees’ roles. However, according to (Bednall et al., 2014), the competence-based appraisal can focus on the new competencies employees learn on the job.
DeleteThank you for your comment Sanath. Employees’ satisfaction towards personal appraisal is one of the indicators most frequently used by practitioners to assess the success of a PA system (Schrage et al., 2019). Therefore, managers need to be fair and follow the principles when evaluating employees. According to Ellickson and Logsdon (2002), personal appraisal satisfaction relates positively to employees’ job satisfaction.
ReplyDeletePerformance appraisal methods need to have clear visibility. Otherwise, employees may not be confident with the results. The BARS method is more informative than simplistic characters. Scale points are defined by the demanding (effective or ineffective) behaviors of the employee. The person rate employee will appear as an observer rather than a judge (Mathis and Jackson, 2011).
ReplyDeleteA good blog article Visithag. Many companies use performance appraisal data to make decisions about reducing the workforce (Cardy and Dobbins, 1994). The use of performance appraisal needs to ensure the practice of fairness. Thus, avoiding issues arising through discriminatory behaviour on the part of the manager. There are several legal avenues a person may pursue in the United States to obtain relief from discriminatory performance appraisal (Bernardin and Wiatrowski, 2013)
DeleteDear Fazal , Performance Management System (PMS) is defined as a challenge of how to measure EP standards between different departments of a firm and gathering beneficial data about the EP of managers (Wehrmeyer, 1996).
ReplyDeleteIn order to sustain a good EP, organizations must establish Environmental Management Information Systems (EMIS) and environmental audits (Arulrajah et al., 2015).
Thank you for your comment Dulakshi. Armstrong (2006), describes the role of the performance appraisal as a tool for looking forward to what needs to be done by people in the organization in order to achieve the purpose of the job to meet new challenges. Therefore, performance appraisal helps the organization to analyze the performance of employees. However, with the increased focus on teamwork, employee development, and customer service, the emphasis has shifted to employee feedback from the full circle of sources depicted in the multiple-input approach to performance feedback is sometimes called “360-degree assessment” (McLean, 1997).
DeleteThis is the best way to get more outcome for the employees to achieve organizational goals. Performance appraisal is the procedure used to assess job performance and prospective growth. “Performance appraisal is a process of evaluating an employee’s performance of a job in terms of its requirement” (Rajitha, et al., 2019)
ReplyDeleteAgree with your content Farook and furthermore performance management refereed to individual employees and was used by the personal and human resources function (Gary ,2015).Performance Management is a process that consolidates goal setting, performance appraisal and development of an individual in the system and also the system as a whole. The aim is to ensure that the employee’s performance is in alignment and supporting the organization’s vision and mission(Rath, 2018).
ReplyDelete