Performance Appraisal System and Rewarding Performance - Essay Example

?There are various factors that can be taken into account in order to determine the effectiveness of the organization towards the achievement of the desired goals and objectives. According to Kleynhans (2007), performance appraisal is one of the most effective strategies of measuring the performance of the employees in the organization. As such, this paper seeks to design a performance appraisal tool that can be implemented by any organization that is concerned with achieving its desired goals. The paper starts by explaining the meaning of the concept, performance appraisal. The second part of the paper will evaluate the methods that can be implemented in order to deal with poor performance while at the same time rewarding good performance. Performance appraisal can be described as a formal and systematic way of identifying, observing as well as measuring the strengths and weaknesses of the employees in their job (Swanepoel, 1998). The primary goal of performance appraisal is concerned with improving the performance of the individuals as well as the organisation as a whole so that the desired goals can be easily attained. The system of performance appraisal is mainly concerned with gathering information about the performance of different individuals so as to be in a position to make a decision with regards to promotion of other people while at the same time developing and training those who lag behind in order to improve their performance (Mullins, 2010). It can also be seen that a performance appraisal system is designed to provide the managers with information that can be used to make necessary pay adjustments since it is widely believed that employees with outstanding and exceptional performance standards should be rewarded with pay increases so as to motivate them. In most cases, performance appraisal is carried over a certain period of time where the employees are given a certain task to perform in a bid to establish their level of competence. Information about the challenges they have faced is gathered as well as the aspects they found simple to perform. In order to perform this task, the most effective employee performance appraisal tool that can be used is to give the employees short reflective written tests that are designed to explore their views and perceptions towards their work. In order to do this, it is imperative to assign the employees a certain task that ought to be accomplished over a certain period of time. The manger has to design a set of self reflective questions that can be answered in short answers. These questions should be related to the task that has been performed and they help to establish the level of competence of the individual in as far as this job task is concerned. The method of testing the capability of the employees in performing a certain task is very effective since they are compelled to give objective answers that are relevant to the experience they would have gained through the assigned task. The other method that could be used is a questionnaire. However, the disadvantage of this method is that the responses are subjective since they do not provide a deep insight about a person’s perceptions towards a certain job activity. The test method is effective in that a person would be given the opportunity to narrate the real situation he or she has encountered. Chances of objectivity are high given that the individual would be in a position to give personal opinions and ideas towards something. These views can be used to measure against the standard expectations in the organization. If an employee shows that he or she has weaknesses in certain areas, this information can then be used to improve those weaknesses so that his overall performance can be improved. The employees who display exceptional knowledge and skills in the tasks assigned to them can be considered for promotion by the management. They can also be considered for high pay adjustments so as to motivate them in order to continue putting optimum effort in their performance. The problem of poor performance is common in different organizations. There are various measures that can be implemented in order to deal with this problem. Training and development are the most effective ways of improving the performance of the employees. Swanepoel (1998) states that employee training is job related learning that is designed to improve the employee’s knowledge, attitude as well as skills such that he or she is in a better position to perform different tasks according to the expected standards within the organization. It is important for the managers to establish the needs of the employees so that training packages can be tailored in such a way that attainable objectives can be formulated. Training is advantageous in that it allows the managers to identify the competencies required by different employees in executing different job tasks. Training should be an ongoing process and it can significantly help to reduce the problem of poor performance in the organization. On the other hand, human resources development (HRD) is another effective way of dealing with the problem of poor performance. HRD is a learning experience organised by the employer and it is carried out within a short period of time to bring about the possibility of performance improvement and personal growth (Nadler & Nadler 1989: as cited in Swanepoel et al 1998). The management has to perceive as well as to make proper responses to the changes that may take place in the environments in which they are operating since this can impact on the performance of the employees. Through the effective utilization of the HRD strategy, the organization is in a better position to maintain its competitiveness. It also helps the organization to achieve its broad objectives as well as those of the individuals. Training and development strategies are effective in a far as improvement of the performance of the employees is concerned. This help the employees to gain more experience in their tasks and their skills are also improved. Poor performance can be caused by lack of knowledge among the employees and this problem can be dealt with effectively through designing training and development programs that are meant to improve employee performance. On the other hand, it can be seen that job rotation is another effective method that can be used to improve employee performance. This is the periodic shifting of a worker from one task to another in the organization (Robbins, 1993). Performing the same task over and over again can be monotonous and this can lead to poor performance of the employees. It is therefore important for the management to rotate the workers especially those working in manufacturing industries to avoid boredom which can lead to poor performance. If workers are rotated from one task to the other, they can also gain new knowledge that can improve their performance. In order to reward good performance, financial rewards in an organization play an important role and they are considered as a motivator. It is therefore of paramount importance to design and update competitive salaries in response to outstanding performance of other workers. The performance appraisal system can be utilised in where salaries are modified according to achieving set targets by the employees involved. The aspect of pay is important to high achievers because it serves as a measure of performance as well as accomplishment of desired goals (Jewel, 2000). An employee who expects to be highly paid has to excel in production levels. This positively contributes to increased productivity of the organization as a whole. Financial reward is seen as the most effective strategy that can be used to reward good performance in an organization. Outstanding employees can be given bonuses after a certain period in recognition of their sterling work in the organization. This can also motivate other employees in the organization since they will be compelled to put optimum effort in their work knowing that they will get a reward for good performance. Over and above, it can be observed that a performance appraisal system is very important in the organization in as far as employee performance is concerned. This strategy helps the management to gather relevant information about the employees and this can help them to make informed decisions in as far as aspects such pay increases and promotion are concerned. It has also be observed that training and development are effective methods of dealing with the problem of poor performance in the organization. Rewarding good performance is a very effective strategy that is designed to motivate the employees so that they can put optimum effort in their work. This also helps to improve the overall performance of the organization as a whole. References Jewel, BR 2000, An Integrated Approach to Business Studies, Pearson Education Limited, Essex. Kleynhans, R et al 2007, Human Resource Management: fresh perspectives, Prentice Hall, CT. Leggie, K 1995, Human resource management: Rhetoric& realities, McMillan, London. Mullins, L.J 2010, Management and organisational behaviour, 7th Edition, Prentice Hall, Harlow. Robbins, SP 1993, Organisational behaviour: Concepts, controversies and applications.6th Edition, Prentice Hall, NJ. Swanepoel, B et al 2003, Human resources management: Theory and practice, Com press, CT. Read More