Human Resourse Management - Essay Example

Performance appraisal plays an important role in the success of any company as it helps them to manage the employee’s performance. Through this performance report the management can direct their employees as what is to be done to improve their performances. According to Douglas McGregor, the need for performance appraisal is for the following reasons: 1) It provides a systematic judgement, which can increase the salary of the employees, give them promotion and sometimes the judgement also leads to termination and demotion. 2) Behavioural changes are suggested to the employees. 3) It is also used for counselling and coaching of the individual by their superiors (Deci and Ryan, 2005).

Objective of Performance Appraisal Performance appraisal deals with the people as the aspects of the organisation. According to Fletcher, employees see themselves to be the beneficiary when the organisation goals are fulfilled. They are properly rewarded and also get the opportunity for promotion and development of their talent. There are three factors that help to determine whether the employees are engaged in the process for meeting the objectives of the appraisal. They are as follows: 1) Perception of the employees that the assessment is fair (Deci and Ryan, 2005). 2) The existing relationship between the employees and the person who is doing the appraisal. 3) The impact of the appraisal of the employees that can lead to reward or their promotion (Deci and Ryan, 2005).

The following are the objectives of appraisal: Increase productivity and motivation: It helps the employees to identify their talent and create a plan for them to achieve their goal set for them. Clarity in their work plan creates greater focus on the job assigned to them and leads to better performances and commitment to the organisation. Thus, it increases the productivity of the organisation along with the individual employees. Increase Transparency: Setting the targets and making agreements on the measurement criteria brings transparency to the appraisal process.

For retaining good talent in the organisation: It helps in taking people related decisions for the organisation such as the career development, career planning, opportunities for training and development and succession planning. Good performers are rewarded with promotion, increased compensation and also given the opportunity to groom their opportunity in the organisation. Increasing commitment: It helps the employees to bring good self awareness of the employees and thus increase their commitment for the organisation (Deci and Ryan, 2005).

Obstacles to achieve Performance Appraisal The main barriers to performance appraisal are the following: Unrealistic assumptions: Sometimes the appraisal fails to achieve its goal due to the unrealistic assumptions that are set by the superiors. These assumptions are not accurate and make faulty decisions that affect the employees. They sometimes do not conduct formal appraisal as they think that personal opinion is more accurate than formal appraisal. Sometimes managers consider the appraisal system to be perfect and thus they expect a lot from the process.

But no appraisal process is absolutely perfect (Coens and Jenkins, 2002). Importance of Performance Appra