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Performance Apprasial Management - Assignment Example

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Performance Appraisal Date Company’s needs to evaluate their performance to determine whether they are in the right track of realizing the organizational objective. Performance appraisal can be defined as the formal evaluation of employees’ performance by the immediate supervisor through constant interaction (Murphy & Cleveland 1995)…
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Download file to see previous pages Biasness must also be avoided and the necessary actions from the appraisal should be communicated effectively and efficiently to the concerned parties. Companies that have done appraisal well have always been associated with better performance and high employee motivation (Schuler 2006). To achieve the process, employees must be handled as rational people and should not be intimidated. Reasons for appraisal There are various reasons why organizations engage in employee performance. First, it is through evaluation that the organization and employees get to know of the feedback of their performance (Schermerhorn 1993). Research has shown that if employees obtain feedback on their performance, they get to feel appreciated and are therefore ready to continue with their positive performance or improve their efficiency through taking corrective actions. Appraisal also makes employees get motivated. Motivation is the urge of doing or not doing something. If appreciated through giving feedback and when employees are challenged of the gap that can be filled to increase efficiency, they get motivated and their commitment to the organization increases (Grote 1996). As a result, the employees’ turnover will reduce and organizational continuity will be enhanced. Another reason for appraisal s to help peg employee rewards. Organizations’ that undertake appraisal get to determine the rewards and bonus on performance. Promotions and retentions will always be based on the appraisal results (Smith & Hornsby 1966). Moreover, appraisals are aimed at identifying the employees training needs and the employees that need to be taken for further training. The employers will therefore be geared at matching the skills required in performance and those in possession by the employees. This will prevent organizations losses and breakages and increase output. In addition, employees’ appraisal is aimed at improving the interaction between the employee and the supervisor hence creating team building (Lingham 2007). The employees interaction will be enhanced and strong relationship will be created between the employees and supervisors. Appraisal also helps in the revision of employee policies (Smith & Hornsby 1966). Companies like PepsiCo and diamond international that have employed performance appraisal have realized improvements in their performance and high employee morale. In PepsiCo for instance, employees who have achieved exceptional performance are rewarded with bonus and their promotion guaranteed (Armstrong & Appelbaum 2003). These employees are always retained and preferred in cases where the company needs to improve their production of their staff. The same applies in Diamond international where employees, efforts are recognized and rewarded (Schermerhorn 1993). In these companies, there has been increaseproduction and low employee turnover. Through performance appraisal, corrective actions are made and company’s’ products improved (Alvi 2011). Performance appraisal is therefore value additive when properly done and implemented. Trends in Performance Appraisal Currently, the appraisal methods have tremendously changed to conform to the new organizational structures and objectives (Bhatia 1981). The first trend in employee evaluation is the linking of employees’ performance to the general organizational objectives (Lingham 2007). ...Download file to see next pagesRead More
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