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It is essential for nurse managers to assess the performance of clinical nurses, and to manage them effectively and efficiently as a human resource. There are several techniques of performance assessment in organizations and in health care contexts such as in nursing (Roussel & Swansburg 2006), including the use of a consistent numerical assessment system by managers or qualitative appraisal approaches (Murphey, 2004). For over three decades, organizations have considered performance appraisal systems as key organizational processes for the management and development of personnel (Giangreco, Carugati, Pilati et al 2010; Levy & Williams 2004; Ferris, Timothy, Basok et al 2008).
The aim of performance appraisal systems is to regularly offer a comparison between the level of performance expected by anyone organization and the performance achieved by an individual or group of individuals. These comparisons are based on objective and subjective factors (Coates 2004). The basis for performance evaluation is that measuring performance helps to improve performance by providing concise feedback on how the individual or department is doing in the workplace. The popularity of the use of appraisal systems is however surrounded by a forceful debate on their productivity and the related costs and benefits.
‘It is widely believed that performance appraisals are prone to bias, that they do not demonstrate high levels of accuracy, and that they are not readily accepted by users’ (Banks & Roberson 1985 p. 128).
The argument against the use of performance appraisal systems is based on tension in the organizational climate, as well as resistance and opposition amongst employees who may find the use of performance appraisal systems derogatory or pejorative (Wright 2004). In some cases, a negative performance appraisal may even lead to a reduction in productivity (Huselid, 1995). Western business environments are different from those in the east, and globalization has provided access to various business environments, necessitating optimal expertise, and this leads to a need for alternative performance appraisals and a varying array of work ethics and production limits in the workplace.
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