Human Resource Departments in Organisations - Essay Example

Running Head: How contemporary organizations in the UK can most effectively use performance appraisal to improve how their employees undertake their work Student’s name Institution Course Professor Date Introduction The main aim of human resource departments in organisations is increasing the productivity of their employees in order to aid the organisation in achievement of its objectives and goals. One method of achievement of increased productivity is through implementation of effective performance appraisals in the organisation. Performance appraisal is the ongoing process of evaluating employee performance. It is one area of performance management in the organisation, ACAS, (2011). For contemporary organisations in the UK to use performance appraisals to improve productivity of their workers, the general appraisal process must be carried out effectively and its outcomes put to practice. Organisations may realize decline or no change in workers’ productivity if appraisal process is not implemented effectively. Organisations should carry it out continuously, choose appropriate assessment, appraisal method and systematically carry out the assessment procedure. Many organisations that do not effectively carry out appraisal process occasionally come up with poor reports and make poor decisions, (Arthur, 2008). This hinders increasing productivity in the future. Appraisal process Organisations and their human resource departments must effectively carry out the process of performance appraisal. Performance appraisal involves a wide range of activities that starts with monitoring employees’ performance and ends with preparation of appraisal report. For the organisations to carry out effective appraisal they should follow the following appraisal step: Step 1: Establishing standards of performance Each organisation must carry out an analysis on the standards of job performance expected from each worker and the general workforce. This will aid in carrying out performance measurement and analysis since this will be compared to actual performance of the employees. The set standards of performance in the organisation should be reasonable. That is they should be attainable by the workers so as not to be demoralized in their duties. Organisations must carry out effective job analysis in order to know the standards of performance expected from each worker. In job analysis the human resource can use factors like skills needed to perform a job, quality expected, available of machinery for job performance, number of employees performing the task among other features of the job in coming up with expected standards. Step 2: communicating the standards to the employees After setting the organisation standards, the standards should be communicated to the employees. Employees should be able to understand what is expected from them while performing their duties. Understanding of organisation expectation enables employees to put more efforts in their duties in order to achieve the expectations. This helps the organisation workers in working towards achievement of organisation goals, objectives and targets, (Beardwell et.al, 2004). This thus improves their productivity. Step 3: Measuring actual performance Organisation should be able to adopt good methods of measuring employees’ performance. The methods should be objective and accurate in measuring the performance. Performance must be accurately monitored and measured this gives a chance to know where they are required to improve. Understanding areas necessary for improvement will help the organisation in implementing necessary training and worker development in the organisation. The measure of performance should be valid, reliable, acceptable and feasible, specific and based on the organisation mission and objectives. A reliable measure is consistent in measurement of the workers’ performance while a valid one measures what is intended to measure. Organisations should avoid the use of invalid and unreliable methods of performance measurement. The method should be acceptable to all stakeholders in the organisation. Both the organisation management and the workers should agree on the use of the measure. Acceptance of the measurement means of performance is crucial in avoiding resistance from the workers. Occurrence of resistance is a big hindrance to effective carrying out of successful performance appraisal in many organisations, (Stanton, 2000). The measure of performance standards should also be specific in what it measures and be in line with the mission and objectives of the organisation. This will aid in guiding the employees towards achievement of the organisation mission and vision. Step 4: comparing actual performance with established standards After accurately measuring actually performance, the human resource personnel should carry out an analysis between the actual and established standards. Various factors either under the employee or not under their influence usually cause deviations. They should analyse the variation in performance and study the causes of their difference. They should then communicate the rating and performance measurement to the employees. Employees should be informed of their performance and a discussion be held to discuss the outcomes of performance measurement. Good understanding of actual results by the employees enables them to know how they are performing compared to the set standards. Underperforming employees should be encouraged to improve their performance while performing ones are further motivated through rewards like promotions, increase in salaries among other motivating factors. Such activities will enable increase in employee productivity. For performance appraisal to be effective organisations should be able to decide on the kind of appraisal method to use and what in particular to assess. Depending on the type of organisation, they may decide to undertake trait appraisals, behaviour assess or results assess. Trait appraisals measure the physical or psychological characteristics of workers that affect their job performance. Behaviour appraisals measure and assess the employees’ actions that affect their job performance. Results or outcome appraisals in the other hand is concern with evaluation of workers goals achieved at the end of the set targeted time. We have appraisals methods like top-down, self-appraisals, multisource assessments, upward appraisals or subordinate appraisal, peer reviews, computer-based appraisals among other kinds of appraisals. Organisations should use variables like ease of use, usefulness in productivity improvement, validity or relevance of the method, reliability of the method, type of jobs performed, nature of work relationships among other methods in deciding appropriate method to carryout effective appraisal in their organisation. Appropriate appraisal method is very crucial in achievement of the intended objectives and goals of appraisal undertaken. Performance appraisals in organisations should be scheduled effectively. Organisations should consider appraisals as a continuous process in the organisation. Both formal and informal appraisals needs to be undertaken in order to ensure workers productivity continuously monitored. Organisations that only undertake appraisals during specific times during the year do not get clear picture of the real productivity levels in the organisation. This is because workers may change their productivity during this time in order to give a different picture other than their real one. Continuous appraisals not only provide accurate information for future quality decision making but also ensures that workers productivity is increased since they know that they are always in appraisal and performance report developed. Implementation of performance appraisal report After carrying out the appraisal in correct manner, organisations should analyse the report and carry out necessary measures that improves workers productivity, (Guerra-Lopez, 2008). Appraisal reports show clear indication of workers current productivity rates and other series of valuable results. It shows factors like productivity per each worker, difference between set standards and actual standards, It is important that the organisation uses it to implement production improvement. Some methods of effective using this is through communicating employee performance between the management and employees, decision making, evaluation and motivation in the organisation. Appraisal should be able to provide means of communicating performance in the organisation, (Chevalier, 2007). An organisation should be able to undertake two-way understanding concerning performance between the human resource management and the workers. The report should give an opportunity to workers to give their feedback concerning their performance. Good communication in the organisation will enable them understand what lowers down productivity and what needs to be done to improve productivity. Factors that the management may not know like lack of training, poorly maintained equipment, lack of tools necessary to perform, conflict within work groups, and many other things that they do not see as a priority in the working of employees are exposed. Productivity improves through solving such obstacles in the organisation that hinders effective utilisation of workers skills, knowledge and efforts. The report and the effective communication between the workers and management should be put in place in decision making in the organisation. Information and facts are very important in quality decision making and this is one way of achieving effective decision-making. Organisations should use the appraisal report to make evaluative decisions concerning matters that improves productivity of the workforce. Such matters may include policies on increasing payment of salaries and wages, promotions in the organisation, demotions, terminations, provision of training and development. Good decision making in most of this area will improve productive in the organisation. For instance, good training and development programs in the organisation will ensure that workers receive lacking training that will make them improve their performance. A possibility of provision of unnecessary training that may be expensive to the organisation is reduced. Quality decisions in rewards, promotions and terminations systems of the organisation promote fairness in the organisation. Performance appraisal in the organisation should be able to provide motivation to the employees, (CIPD, 2003). Motivation among employees makes them improve their individual productivity. In the appraisal process employees, the stakeholders should create the willingness to achieve organisational objectives. Conclusion Performance appraisal is a very important area in performance management in the organisation. Performance appraisal is very important in improving employee productivity in organisations. For contemporary organisations to improve the effectiveness of performance appraisals in improving workers’ productivity much efforts needs to be channelled in effective appraisal process itself and implementation of the outcomes of the process. The appraisal methods, assessment techniques and measurement methods of performance must be effectively undertaken in order to come up with quality appraisal report. Appraisal should be a continuous process in the organisation. Good appraisal process ensures actual performance of workers is evaluated, necessary measures to improve performance are analysed and the general productivity of workers improved. Necessary decisions on ways of improving productivity need to be implemented by using the accurate appraisal reports. Decisions on promotions, terminations, training and development, pay increment among other means of increasing productivity are put in place by respective organisations. Quality decision making creates fairness and motivates employees thus making them to increase their productivity. Reference ACAS,2011.How to manage performance’ available www.acas.org.uk/media/pdf/g/7/Acas_how_to_manage_performance-accessible-version-Nov-2011.pdf. Arthur, D. 2008. Performance appraisals: strategies for success. New York, American Management Association. . Beardwell, I, Holden, L, & Claydon, T. 2004. Human resource management. A contemporary Approach. 3th edition. . London: Prentice Hall. Chevalier, R. 2007. A manager's guide to improving workplace performance. New York, AMACOM, American Management Association. . CIPD Report ,2003. e -Learning: The Learning Curve by Sloman, M. & Rolfe, J.London: CIPD. Guerra-López, I. 2008. Performance evaluation: proven approaches for improving program and organizational performance. London, Jossey-Bass. . Stanton, J.M. 2000. 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