True Purpose of Performance Appraisals - Coursework Example

Executive summary Performance appraisal is an important corporate entity. It is a recommendation to most organizations as it aids both in the personal improvement of the workers as well as to the control of management. Performance appraisal is normally done using different styles such as management by objectives, 360- degree appraisal, behavioural anchored rating styles and trait-based systems. The performance appraisal aids individuals in career development and thus self-fulfilment. This is because most individuals desire to grow in their careers and to learn new challenges each day. Thus, personal learning is an important aspect of performance appraisal. It eventually aids the management to achieve the organizational goal. Performance appraisal also aids the in management control as it provides sufficient information which is used in managerial decisions. These decisions include such things as training decisions, promotion decisions, granting of bonuses among other things. It is difficult to separate the purpose of performance appraisal and determine whether it is for management control or for personal learning. This is because personal learning eventually aids the management in by the fact that the ultimate performance of the organization is improved. The management always desires to work with the best qualified staff thus personal learning among their employees is a key element towards corporate development. Introduction Performance appraisal is sometimes referred to as employee appraisal (Maurer 10). It refers to the process within an organization in which the job performance of employees is evaluated. It normally focuses on such aspects as quality of the job done by an employee as well as the quantity of work done by the employee (Billett 319). It also focuses on such aspects as time spent to perform the job as well as the cost that is incurred to fulfil that job. This is normally done by a corresponding manager who acts as the supervisor during the task fulfilment. It serves to the employee as a pathway to career development as they learn new tricks and skills during the tenure of the appraisal. To the employer on the other hand it serves to give them the true worth of an employee to the organization (Buchner 60). This they obtain by reviewing the four aspects discussed above by obtaining the information concerning the employee analysing it and recording so as to get the appropriate feedback. The report obtained after appraisal also includes employees’ recent failures as well as successes and also the strengths he possesses and the weaknesses as well (Maurer 15). This information is normally used by the employer to judge whether the employee deserves further training and whether he is suitable for promotion. Methods of performance appraisals Performance appraisal within an organization is done using different styles. The method employed for performance appraisal within an organization is very dependent on the choice of the management. There are several methods that can be employed (Gray 453). A Sample of these includes: Management by objectives - This is a technique where the objectives of the organization are well spelt out to the employees for they are involved in the process of goal setting. This facilitates the clarity of the information to the employees as well as the administrators. This increases motivation among the employees. It also ensures that there is better communication (Boud & Middleton 198). 360- Degree appraisal - This is an appraisal technique in which the employee is observed from all round. He is conceived to be at the middle of the circle and feedback concerning the employee is drawn from all around him. The information obtained by the management about the employee is then used to plan the training process as well as employee development (Buchner 65). Behavioural anchored rating scales - These are use d to report the performance of employees. The scale points run from five to nine. Trait based systems - these are techniques these rely heavily on the character of the employee such as his level of integrity Role of performance appraisal in performance control Performance appraisal as discussed above has a contributory role in management control. The management uses the opportunity of performance appraisal to achieve several objectives. The management’s effectiveness is usually rated by the performance of the organization as well as the results obtained at the end of the financial year. The management therefore has to ensure that it employs all the tools that can help the organization to achieve its objectives (Buchner 69). One of the main tools the management uses so as to ensure there is an upgrading in the performance level is employee appraisal (Billett 310). It aids in helping the management to gain better control of the organization and to ensure that the activities are being run as they actually should be. This they do by getting the details of employee’s performance as each line manager deals with his line of employees (Gray 461). This is revealed in the following advantages of employee appraisal to the management. Giving feedback about the employees and their performance - This information when obtained lays the foundation for any subsequent decision that needs to be made by the management concerning the employee. Identifying the needs of the employee - The organization’s management also uses the performance appraisal to identify the training needs of the employees. Where flaws are noted in the employee’s performance the organization then employs means so as to improve and upgrade the performance of the employee. This is normally done through training forums (Easterby-Smith 1090). The information from the appraisal is also used to form criteria to be employed in allocating rewards in the organization. The management does this by identifying the various strengths and weaknesses and identifying who deserves to be rewarded as a result of outstanding performances (Maurer 19). This concept is used for motivating the workers. Thus, in the long run it results to better performance as every worker covets the reward and thus puts extra effort. It also helps the management to form decisions on such issues as salary increment. This is when the performance of an employee is accredited and the management now results to a conclusion of increasing the salary. It also helps in making decisions such as promotions depending on the outcome of the result of the appraisal. This could also result to implementation of disciplinary actions where workers flaws and weaknesses as well as unpardonable failures are identified. Finally, this also could help the management to reach to a decision of issuing bonuses and determining how much is due to who and who qualifies and who does not qualify (Gray 465). The process also facilitates the communication between the employee and the administrators. The process of appraisal is an interactive process that provides an opportunity for the workers to give feedback to their employers concerning their performance. The administration is also able to learn the employee’s complains and it could lead to the improvement of relationships (Boud & Middleton 196). Employee appraisal is also used to ensure improvement and development of the organization as a whole. Appraisal could sometimes involve the introduction of new techniques altogether. In the process of employee appraisal, some techniques that are employed are coaching of employees as well as counselling. At the end of the process, the employee in question has improved and this contributes to the development and betterment of the organization. The improvement and betterment could also result from the improved communication (Buchner 70). Performance appraisals also help the management to monitor the employees’ standards of operation. They are able to observe whether the employees are flowing with the objectives of the organization (Billett 321). This will aid in the decision making process as far as the management is concerned. The information from the annual employee appraisals aid in the planning and organization of the annual activities of the organization in the following annual year (Easterby-Smith 1110). This is so because from the appraisal of employees there is fresh information as per who needs a pay rise or a promotion and thus the results obtained aid in planning as well as in budgeting. The process of appraisal is also used in succession planning where in case of retirement or any other termination appraisal ensures that the succeeding candidate is well versed for the job vacancy (Boud & Middleton 201). Role of performance appraisal to employee learning Appraisals are also important for the personal improvement of the employees. One of the key elements that many employees state in their resumes as their requirement from the organizations they work for are personal development in their careers (Maurer 38). Employees draw more satisfaction from their jobs if they keep improving their performance with the aid of their employers and administrators. The ways the employees benefit are 1. Through coaching of better performance by their line managers and supervisors, the employees are able to improve their role performance and thus gain better skill in fulfilling their duties. This gives them fulfilment in their careers (Gray 468). 2. Employee appraisal also results in the training of the employees, which make them, better equipped for the roles they perform for the respective organizations for which they work. 3. It also helps the individuals also give a clear record of a person’s failures and weaknesses as well as strengths and successes and this record an individual can see to improve on their weaknesses and failures as well as to major on their strengths and successes so as to ensure better performance (Easterby-Smith 1089). 4. Appraisal also helps the employees to develop a better attitude towards life and causes motivation as sighted in the objective style of appraisal. So is appraisal done for employee learning or for management control? Employee learning is a very core element in any organization. This is so because the performance of an employee to a large extent determines the eventual performance of an organization. Each and every manager wants to work with the best and most productive workers so as to ensure that performance of the organization is exemplary. Employee learning, in case of some elements lacking in the qualification of the employees, is very crucial to the management. They will put in place every measure to ensure that the employees are well versed to fulfil their duties and roles within the organization (Maurer 40). This is core because it will finally reflect on the image of the management. When the work performed by the employees is quality, the organization releases quality products and the organization trades better tin the market place and all the credit goes to the management as it reflects their the effectiveness. It is recommended that in appraisals the whole person should be helped to grow in every aspect (Buchner 66). This goes beyond the skill aspect. It is therefore almost impossible to separate the function of employee learning and the management control. This is so because when the management employs the measure of performance appraisal they want their employees to learn and thus improve their performance and at the same time, they want to draw information that will assist them in the control of the management function (Easterby-Smith 1109). Answering the question of whether performance appraisal is carried out for employee learning or management control is almost impossible. These two are almost intertwined and they both determine the corporate identity. Most of the information that is drawn from the performance appraisal aids in a great way in the management control. This helps the management to know who to promote, whose salary needs to be increased and who deserves what type of training (Gray 462). The management is also able to understand the standards of its workers. However, as the management employ the concept of performance appraisal in their organization one of the chief aspects that they seek to improve is the employee learning. Conclusion Every organization poaches for the best employees in the market, whenever it attains the objective it has to ensure that they are sufficiently trained and that they meet all the objectives of the organization. Performance appraisal is a crucial element in any reputable organization. This is because it improves the skills of the employees through the intensive learning it entails. On the other hand, it aids in the management control as it provides information that may aid in the implementation of the important decisions. Performance appraisal therefore aids both in management control and in employee learning. References Billett, S. Workplace participatory practices: conceptualising workplaces as learning environments. Journal of Workplace Learning, 16.6 (2004): 312-324. Boud, D. & Middleton, H. Learning from others at work: communities of practice and informal learning. Journal of Workplace Learning, 15.5 (2003): 194-202 Buchner, Thomas. "Performance management theory: a look from the performer's perspective with implications for HRD", Human Resource Development International, 10.1 (2007): 59-73. Easterby-Smith, Mark. Disciplines of Organisational Learning: Contributions and Critiques. Human Relations Journals, 50.9 (1997): 1085-1113. Gray, C. Management Development in European Small and Medium Enterprises. Advances in Developing Human Resources, 6.4 (2004): 451-469. Maurer, Todd. “Employee Learning and Development Orientation: Toward an Integrative Model of Involvement in Continuous Learning.” Human Resource Development Review, 1.1 (2002): 9-44. Read More