Performance Management and Appraisal Systems - Essay Example

Performance management and appraisal systems In recent past, organization’s operations have become very competitive and dynamic. As a result, employees have played a significant role in shaping the organization’s structure to channel them to success. Likewise, in order to further ensure organizational growth and profitability, performance management, and appraisal systems have been crucial. Performance appraisal may also be referred to as a performance evaluation, (career) development discussion, performance review or employee appraisal and be viewed as the systematic and periodic process of assessing and noting staff performance for the objective of making judgments concerning staff that result in decisions (Lyster & Arthur, 2007). Performance appraisals are necessary for the effective organization management and evaluation of employees. Performance appraisal may also be referred to as a system of highly interactive and dynamic processes that encompasses personnel at all levels in the organization in different degrees in obtaining job expectations, selecting an ideal appraisal criteria, writing work descriptions, developing assessment instruments and process, collecting interpreting, and finally reporting results. Performance management can be referred to as a holistic procedure that encompasses many activities that collectively lead to the efficient management of individual workers and teams in order to high levels of organizational performance are attainable. The Performance Management is always strategic, as it is a concern with broader issues and organization’s long-term goals. The importance of performance appraisal There exists various importance of performance appraisal in the organization. They can be broadly considered as providing performance feedback in the organization, validation of the selection process and provision of the required actions to be taken by managers to improve overall performance. Provision of performance feedback Most works are always interested in obtaining information to improve their work performance in order to obtain promotions and merit pay. They are also a concern in knowing how well they are performing presently and how they can do even better in a future. Proper performance appraisal provides feedback that can improve the employees future performance of the organization hence considered very important (Lyster & Arthur, 2007). Furthermore, it also provides employees satisfaction and motivation. In doing this, performance appraisal may also uncover information that could be impeding workers from performing at their best, and they can take corrective measures should need be. Moreover, having a timely performance appraisal allows the manager to view performance within the organization through their eyes and get the worker’s "side of the story" and through this be able to obtaining feedback on employees strengths and weaknesses. Provision of insight into areas of management intervention Performance appraisal provides management with the insight to areas within the organization where improvements and other strategies can be laid or place to ensure more. For instance, through performance appraisal determination of training needs are highlighted. Performance appraisals are always effective, post-appraisal opportunities for training and development in challenging areas, as determined by the appraisal, are offered. Performance appraisal can especially be essential for identifying training requirements of new workers (Lyster & Arthur, 2007). Likewise, Performance appraisal can help in the supervision and establishment of employees’ career goals. Validation of Selection Process Performance appraisal is a channel of validating both external (hiring new workers from outside) sources and internal (transfers and promotions). Many organizations spend a lot in terms of money and time for recruiting and selecting candidates. Various instruments used in the selection process are used to forecast the candidates performance in the workplace (Lyster & Arthur, 2007). A proper performance appraisal assists in proving the validity of the various selection tools and thus provides a good reference for future select process efficiency. Furthermore, to reviewing performance based on initially established goals, it becomes a good time for establishing even new goals. Methods of Performance Appraisals Various methods have been devised by the organization to measure the quality and quantity of performance appraisals. However, each of the methods is may only be effective for some purposes for a given organization. Broadly all methods of performance appraisals can be divided into two major categories: Past Oriented Methods and Future-Oriented Methods (Lyster & Arthur, 2007). Rating Scales: This is the oldest and the simplest existing method of performance appraisal. Two common rating scale performance appraisal techniques are the behavioral rating scale and graphic rating scale. With the graphic scale, workers within the organizational framework are assigned a score on criteria essential to job success. Rating scales has numerous numerical scales expressive of the job-related performance criterions like as, initiative, output, attendance, dependability, attitude among others. Likewise, each scale ranges from poor to excellent. Then numerical scores obtained are computed and used to derive final conclusions (Lyster & Arthur, 2007). The behavioral scale, on the other hand, focuses on actual behaviors. Thus, if there are twenty employees in an organization the best employee obtains the first rank and the worst worker in the group obtains the twentieth rank. Essay Method: In this method, the rater is asked to express employee’s description (the strong and weak points of behavior of the employee. This method is occasionally used with a combination of the graphic rating scale since the rater may clearly present the scale by substantiating an explanation for their rating. The technique is highly dependent upon the writing skills of the rater and most of them are not good writers. Checklist: The main role of this technique is to minimize the evaluators burden of rating the employee. In this method, checklist of statements of traits of the employee in the form of Yes or No based questions is prepared. In this technique, the rater only reports or checks and Human Resource department conducts the actual evaluation. This method of performance appraisal is economical, requires limited training or standardization and easy to administer. However, there could be cases of rater’s biases and HR use of improper weighs. Critical-Incident Appraisal: This is performance appraisal method in which the supervisor maintains a record of incidents that demonstrates positive and negative manners in which the employee has acted within the organization; later on the supervisor in charge uses this record to evaluate the his or her performance. Forced Choice Method: In this technique series of statements are organized into two or more blocks, and the rater required indicating which statement is true or false. Human resource department does actual conduct assessment. The rater is compelled to make a choice. One major advantage of this technique is that it lacks personal biases since there is forced a choice. However, it may be disadvantageous when the statements are wrongly framed (Lyster & Arthur, 2007). Field Review Method: This technique of appraisal is conducted by an individual outside worker’s department normally from HR department or corporate. Benefits that the method provides it is useful for managerial level promotions within the organization, when comparable information required. Performance Tests & Observations: This method is based on the test of skills or knowledge. The tests could be written or presentation of skills. However, tests must be validated and reliable to be useful. This method is advantageous since tests could be apt to measure potential compared actual performance. However, the tests could suffer if costs of test creation or administration are quit high. 360-Degree Feedback: This is a common performance appraisal technique, and it provides a 360-degree feedback. In this technique, employees are evaluated by colleagues in the organization, customers they serve and other interested parties and supervisors (Grote, 2011). The main benefits of this method are that it provides the employee a clue of how others view their performance in scores of relationships critical to their job. It also provides a better chance to correlate different viewpoints in the evaluation process Management by Objectives: Philosophy of management that normally rates performance in an organization on the basis of employee accomplishments of goals set to them by mutual agreement by the organizations. This method of performance appraisal is based on the fact that employees are rated on their individual achievement. Evaluation of performance appraisal Evaluation of performance appraisal is always important in identifying workers within the organization with potential, rewarding` these workers equitably and their needs to help them develop (Grote, 2011). When all these are done the organization, they are in line in achieving their long-term objectives. There are various steps in performing the evaluation. The initial step is establishing or coming up with ideal standards for each position within the organization. When this is done, it follows that the employees who are to be evaluated set their objectives. The organization does this to ensure they are in a position to know when to rate and how to rate (Grote, 2011). Then the organization ensures raters gather the required date on employee’s performance. The purpose of evaluation is to ensure that the performance appraisal conducted is effective. Performance appraisal is only effective when various intended goals within the objectives are achieved. Evaluation process includes a thorough review of overall progress from the appraisal process and through that discusses the problems that were likely to have been encountered. It is also important for the organization to discuss how performance appraisal that currently exists is in line with the organizational and individual’s long-term career objectives. The overall goals of performance appraisal Productivity/Output One main overall objective of any performance appraisal is to enhance productivity. Productivity is the essential asset individuals bring to the employment relationship. Productivity objectives normally can be tied to measurable outcomes, such as the number of entries made per month in a data-entry job or a given number of units produced per month on a production line. Since in most cases employers exchange their money for quality service, so working to enhance employees productivity is always a way for organizations to get the most out of their expenses (Grote, 2011). Waste/ Mistakes Mistakes at workplaces incur opportunity costs from foregone productivity in many settings Performance appraisal helps identify and address individuals within the organization who make an unusually high number of mistakes. This costs organization money in industries like as food service. Through performance appraisal, individual‘s achievements are generally evaluated in time, and corrective measures undertaken (Grote, 2011). Individual Goals The many effective performance appraisal systems have a collaborative goal-setting process between their supervisors and employees. Employees within the organization can work with their managers to develop personal goals for all employees (Sims, 2002). Some employees may set an objective such that they report to work on time and improve their rate of productivity, for example, or of accepting on new work tasks. Paying personal attention to every employee when setting objectives can boost employee’s commitment to accomplishing appraisal goals. In the long run, this ensures overall objectives of the organization are achievable. Employee Development Performance appraisals can be an idyllic setting in which to set goals for accomplishment in worker’s development initiatives. Employee development programs allow for employees personal and career growth through progressive training and opportunities to take on new obligations (Cardy, 2011). For instance, employees may set an objective of completing a management training course in a period of the year or of learning a given number of additional tasks in the department prior to the next performance review. As a conclusion, performance appraisal plays an important part in enabling an organization succeeds and maintain competitive advantage. Performance management too aims at developing employees with the needed competencies and commitment to working in the direction of shared meaningful objectives within any organization. They are also designed with the overall goal of improving both employee’s and organizational performance by isolating performance requirements, providing continuous feedback and helping the individuals in their career development. There exist various methods that have been designed in a way that when evaluation is done it ensures success of performance appraisal without bias and at the same time avoiding undermining the role of supervisors within the organizational framework (Sims, 2002).  Performance evaluation process should be a key component of organizations practice structure. When the process is implemented effectively, it enhances fairness and accountability .It also promotes growth and development. Finally, it encourages a sense of pride in employee’s contributions to ideal practice (Cardy, 2011). ReferencesTop of Form Top of Form Top of Form Bottom of Form Top of Form Cardy, R. L. (2011). Performance management: Concepts, skills, and exercises. Place of publication not identified: M E Sharp. Grote, R. C. (2011). How to be good at performance appraisals: Simple, effective, done right. Lyster, S., & Arthur, A. (2007). 199 pre-written employee performance appraisals: The complete guide to successful employee evaluations and documentation : with companion CD-ROM. Ocala, Fla: Atlantic Pub. Group. Sims, R. R. (2002). Managing organizational behavior. Westport CT: Greenwood Press. Bottom of Form Bottom of Form Bottom of Form Bottom of Form Read More