Performance Appraisal Practices and Policy Options - Dissertation Example

there is no research study on performance appraisal within entertainment joints and clubs. This dissertation thus seeks to explore and study the performance appraisal practices and policy options using a case study of a local nightclub and events management company-The Plug.

1.1 BACKGROUND

Performance appraisal is an objective judgment that is consistently applied to staff after careful consideration. Traditionally, performance appraisal was carried out annually and was the basis for salary reviews although some companies still stick to this view of appraisals. The appraisal was negative in that it was used to punish the non-performers so as to motivate them to improve performance (Arthur, 2008).  However, modern organizations have realized the great role played by performance appraisals and the need to conduct such practices continuously rather than wait for annual appraisals. This enables the employees to know their weak areas and improve on them on a continuous basis hence high achievement. The performance appraisals rather than being used for punishing low performers are nowadays used to reward high achievers and for staff development.

The effectiveness of performance appraisals varies from company to company depending on various factors such as organization culture and the appraisal methods used. There is thus no universally agreed with the type of performance appraisal even after various studies on its effectiveness. However, there are basic elements that make up an effective system. Agbola, Hemans, and Abena (2011) argue that an effective appraisal system should be explained and agreed upon by all parties involved, should be job-related, and be in line with the employment laws of the country. By designing clear job descriptions for employees, the management can go a long way in enhancing the effectiveness of the appraisal.

Traditionally, performance appraisal was solely the duty of management but today, most organizations involve employees in the process. The commonly used forms of appraisal include management by objectives, critical incidents, 360-Degree feedback, confidential reports, and behavioral rankings among others. The 360-degree appraisal is considered the most appropriate since all stakeholders get to participate in the rating process although most companies use management by objectives whereby performance is evaluated alongside tangible and measurable goals (Bohlander & Snell, 2010).

Though there is not much information on performance appraisals in the entertainment industry, Plug Nightclub and event management company has an appraisal system in place. This dissertation will be used to explore the effectiveness of such an appraisal system in the industry and make policy recommendations on how it can be developed in the future to enhance organizational performance as well as staff development.