Performance Appraisals and Reviews - Term Paper Example

?Running Head: PERFORMANCE APPRAISALS AND REVIEWS School: Topic: Performance Appraisals and Reviews Lecturer: presented:Introduction Performance appraisals and reviews are objective judgements consistently applied to the staff after careful considerations. The employees upon hiring are given job description which specifies the tasks they are supposed to undertake on daily basis although they are reviewed from time to time. The specific tasks are geared towards accomplishment of the overall organization objectives and workers are evaluated based on their performance of the given tasks on annual basis. The workers are aware of what is expected of them and hence work towards fulfilling their expectations. Since annual appraisal are involving and time consuming for managers, they arrange to carry out surveys or reviews on a regular basis in order to simplify the annual appraisal process (Arthur, 2008).All members of the organization are subject to appraisal if the organization has to achieve its vision and mission and improved performance. Communication is vital in carrying out performance appraisal. The management discusses with the employees regarding their performance and areas that require assistance and also involve them in designing appraisal forms. Conducting annual salary reviews which coincide with performance appraisals have been criticized by many scholars but Chapman (2011) argues that using annual performance appraisal as the basis for salary review enables the firm to plan its finances for the next budget year. When carrying out performance appraisal, the managers should ensure that the mode of appraisal is in line with the employment laws which prohibit all kinds of employment discrimination. For the employees to trust and accept the results the method used should be consistent; ‘same employee classifications should be evaluated based on the same criteria’ (Arthur, 2008). This is to ensure fairness and avoidance of discrimination allegations. There are various types of appraisals; annual confidence reports, management by objectives, ranking, critical incidents and 360 degree appraisal systems. These can be used in isolation or combined for better evaluation. The appraisers should be trained on how to appraise staff to avoid bias. Procedure for Carrying out Performance Appraisal Proper planning and execution of staff appraisal ensures effectiveness, reliability and validity of the results. It also ensures acceptability by the appraisees hence commitment to achieve the set objectives. Involving staff in every step of the process is vital to ensure a feeling of ownership and commitment. The appraiser and appraisee prepare all the materials required for the appraisal such as past appraisal documents and achievement records. The appraisal form is designed by HR department or through collaboration with those being appraised and with the approval by management. Understanding the appraisal form by the appraiser and appraisee is vital in simplifying the process (Bohlander & Snell, 2010). The items to be discussed are sequenced and encompass all aspects of staff development. Self-assessment forms are given in advance for staff to appraise themselves by filling the forms. The next step is to clarify the purpose of the appraisal and the method to be used. The appraisee is informed on the date of appraisal and the venue and given ample time to prepare his/her own records. The venue should be carefully chosen in a private and quiet atmosphere for discussion. The layout of the room and sitting arrangement affects the behavior of the person being appraised. It is thus advisable to set the room in a relaxed atmosphere to reduce tension. Bacal (2003) argues that the managers should choose appropriate sitting position such as at a round table for more informal discussion and relaxed atmosphere. The introduction stage is vital in determining failure or success of the process. If the appraiser begins by criticizing the appraisee, he/she may feel uncomfortable and may lose interest in cooperation. The appraiser thus creates a relaxing atmosphere for discussion by informing the appraisee the items to be discussed, can initiate discussion of past performance or other items which are not job related. Review of the discussion items is done in an orderly manner and anything that comes up during the discussion is noted and discussed later (Grote, 1996). The appraiser should not be biased but should be guided by facts and figures which are reliable. Unreliable data may lead to unreliable review and measurement and consequently unsuitable action plan. Aguinis (2009) argues that reliable decisions can only be made if the right data is used. Employees need to be told the true results whether positive or negative to avoid future conflicts and lawsuits emanating from unrealistic reviews (Sandler & Keefe, 2004). After review and measurement, an action plan is formulated. It takes account of ‘job responsibilities, departmental and whole organization priorities, career aspiration, and strengths and weaknesses observed during the review’ (Chapman, 2011). If action to be taken is training, considering career aspiration and job responsibility is important. He argues that the action plan should be realistic and acceptable by all those involved. The objectives of the plan should be specific, measurable, agreed, realistic, time-bound, and enjoyable and recorded to get commitment from the appraisee. The plan should also take care of full development of individuals as opposed to job skills development only. Support from the supervisors and management is vital to ensure success. The discussion should be closed positively and a record of the main points and agreed actions kept. Appraisers should follow-up to ensure the action plan is working and that the staffs are performing as expected. Appraisal Methods There are various methods of appraising staff. Whatever method that is used, it should be consistently used on similar employee classifications and be in accordance with employment laws. It should also take into consideration full development of the employees. These include; management by objectives, critical incidents, 360 degree feedback and confidential reports. Management by Objectives Performance is measured against tangible and measurable goals. According to Bohlander & Snell (2010), employees know what is expected at the end of the year and authority and responsibility is defined. The workers perform their tasks directed towards achievement of the set objectives and evaluation is based on workers achievement. The employees can carry out self-assessment appraisals to determine if he/she is performing up to the expected standards or is meeting the goals and if there is any problem, the employee can seek advice from supervisor. The employee may request for training or coaching so as to reach the desired level. Since performance is aligned with overall objective of the organization, there is increased productivity. Critical Incidents This method involves studying behavior of employee by analyzing critical incidents at various time periods. The best and worst incidents of behavior recorded in the previous year are analyzed through a set of expressive and purposive statements (Moorty, 2011). Adequate information about the behavior of employee in the past year is required by the appraiser in order to make good judgment which is not biased. Since the behavior is based on past year incidents, it may be disadvantageous to the employee being appraised. The appraiser may also be biased in recording the incidents due to personal opinion hence this method may not be acceptable to those being appraised. 360 Degree Feedback This form of appraisal involves all stakeholders in the organization or all those who are in contact with the people being appraised. These may be; customers, suppliers, workmates, peers, supervisors and team members. All these stakeholders give feedback on employee performance. The appraisee is rated by anonymous raters by filling out appraisal forms which reflects the job skills, attitudinal and behavioral criteria and each is assigned a score (Moorty, 2011).Through the feedback, the employee is able to determine his/her strengths and weaknesses and development needs are established. The use of anonymity allows the raters to give the true scores as opposed to when the person being appraised knows the raters. Managers can use this technique to appraise their effectiveness. However, only observable behavior can be measured hence job skills are not rated and thus difficult to determine training needs. Confidential Reports This method is used to evaluate individuals based on supervisor’s discretion. They are evaluated on annual basis. The strengths and weaknesses of an employee’s performance for previous year are recorded by the supervisors and results kept confidential (Moorty, 2011).The person being appraised is not given feedback hence he/she can’t know whether improvement is needed or his/her performance is satisfactory. There is no discussion between appraiser and appraisee to reach an agreement on areas that need attention hence it may be unreliable. Effective Performance Appraisals The appraisal process needs to be explained and agreed by those involved for it to be accepted by everyone in the organization hence achieve its purpose. The system should be job-related. A clear job description is given to employees upon hiring and performance is based on ability to perform the assigned tasks which are reviewed from time to time and training given for accomplishment of new tasks (Sandler & Keefe, 2004). Some managers have negative attitudes towards appraising staff due to the stress and amount of time involved and may trickle down to the supervisors who then perform staff appraisals which are unreliable. To avoid this, frequent face-face-interviews are essential to familiarize themselves with the process and tackle some issues instead of waiting to resolve them at the end of the year. This helps in building trust and strengthening manager employee relationships hence a relaxed atmosphere during annual appraisal. It also enables employee to evaluate his/her performance based on the monthly appraisal and work towards developing skills to accomplish the set objectives. There is increased reliability of performance data due to thorough evaluations. It also enables quick review of assignments, tasks and objectives. Effective performance appraisals should be in line with employment laws. The appraisal forms should be assessed by human resource managers to ensure compliance. The employment equality laws prohibit discrimination based on age, sex, marital status, race, and religion. In designing a job description which is the foundation for performance appraisal, such factors as age should not be included. Sandler & Keefe (2004) argue that employees with similar assignments and responsibilities should be treated equally to avoid discrimination allegations. The organization should also be consistent in procedures for evaluation and salary reviews. The appraiser should avoid using employee attributes as basis of evaluation but instead should focus on objective evaluation. If appraisal is based on personal attributes, it is discriminatory and the organization can be sued. The review should be put in writing and employee given a copy and generalizing performance should be avoided by including positive and negative examples of performance. Giving feedback often is vital for enhanced performance. Effective performance appraisal should reflect corporate responsibility of the organization. According to Chapman (2011), the appraisal should account for ‘corporate social responsibility, sustainability, corporate integrity and ethics’. This can be achieved by being fair in evaluating staff. It also entails ensuring all aspects of individual development are catered for in the appraisal. Instead of appraising only skills for the job, personal talents, career aspirations and interests should be considered. Ensuring full development of staff leads to overall organization effectiveness. It also acts as a source of motivation hence commitment and eventually the organization is able to recruit and retain best talent and maintain competitive advantage. To ensure success of the appraisal, relevant records should be kept for future reference especially in case of dismissal or termination. Managers should give support to the employees to ensure improved performance. Without support, the reviews would not work hence failure of the appraisal. Support is in form of training, coaching, mentoring, meetings and workshops as well as provision of manuals and guides (Arthur, 2008).Follow up activities ensure the action plan is being utilized properly hence success of performance appraisal. Benefits of Performance Appraisal and Reviews Evaluating employee performance is very essential in determining organization effectiveness. It ensures maximum utilization of employee skills, knowledge and interests (Arthur, 2008 p. 4). It enables the management to monitor employment standards. Continuous performance appraisals enable the managers to discover the achievers and underachievers hence establish training needs and plan for the year ahead. The achievers are rewarded for their performance and underachievers are trained so as to improve their capabilities. Appraisals enable managers to determine the right staff to which they can delegate duties and responsibilities (Aguinis, 2009). Those who perform their tasks effectively and score high ratings can be given more tasks to perform or delegated important tasks and authority to execute them hence career development and basis for succession planning. If those to whom duties are delegated perform well, they may be considered for future promotion. Performance appraisal feedback enhances staff motivation. Communication is enhanced through informal discussions regarding performance hence allowing individuals to determine where they would want to be in future and support given for achievement of such aspirations. This instills a sense of commitment by the staff in achieving the set goals which are aligned with organization objectives. The staff morale is boosted through job satisfaction and enrichment. Motivation is enhanced if there is a promise of reward. Performance appraisals act as foundation for promotion or salary increase (Moorty, 2011). Besides the annual pay increase, high achievers are given incentives or promotion. The staffs are thus motivated to work hard and get incentives. Performance appraisal forms the basis for dismissal. Underperformers are given a chance to redeem themselves through training and coaching. If individuals do show improved performance over time, the management can use appraisal records to dismiss. The ratings should always be recorded for future use in case such an employee files a discrimination case (Arthur, 2008). Realistic employee reviews are thus inevitable. Appraisal feedback is used as basis for organization planning for the following year. It is also used for team building by determining which skills to combine for a specific task. Conclusion Performance appraisals and management reviews are very crucial for the organization. The feedback is used as a measure of organization success and is used in organizational planning. Appraisals act as basis for salary reviews and groundwork for dismissal. Feedback is used in establishing training and development needs of employees. It leads to high commitment by staff and increased morale thus improved productivity. Various methods are used to appraise staff; confidential reports, critical incidents, and 360 degrees feedback. The methods should be consistent and reliable so as to reflect the true picture and promote corporate responsibility. Employment equality laws serve as the basic guideline for appraisal to avoid conflicts and lawsuits. The goals of the performance appraisal should be clear cut so that the staff can know what is expected of them and SMARTER rules used to set objectives and achieve success. References Aguinis, H. 2009. Performance Management, 2nd Ed. Prentice Hall Arthur, D. 2008. The First-Time Manager’s Guide to Performance Appraisal. New York: AMACOM. Bacal, R. 2003. The Manager's Guide to Performance Reviews, McGraw-Hill Bohlander, G., Snell, S. 2010. Managing Human Resources. USA: Cengage. Chapman, A. 2011. ‘Performance Appraisals’. Businessballs.com. Retrieved 26 Apr 2011 from http://www.businessballs.com/performanceappraisals.htm Grote, D. 1996. The Complete Guide to Performance Appraisal, AMACOM Moorty, S. 2011. ‘Types of Performance Appraisals’. eHow.com. Retrieved 26 Apr 2011 from http://www.ehow.com/about-5370143-types-performance-appraisals.htm Sandler, C., Keefe, J. 2004. Performance Appraisal Phrase Book: The Best Words, Phrases, and Techniques for Performance Reviews. USA: Adams Media. Read More