Performance appraisal systems
Performance appraisal refers to the evaluation of the workers performance by the management and providing feedback so as to come up with more improved activities in an establishment.
Difference between formal and informal performance appraisal systems
A formal performance appraisal takes place within a specific time schedule while an informal performance appraisal takes place upon need such as on instances when the management feels the need for communication (Landy.et.al, 2017). Unlike the informal performance appraisal system, the formal performance appraisal system is regarded as the best system. Though informal performance appraisal system is more useful in providing frequent feedback on employee performance, the system should not supersede the formal system of performance appraisal.
Pros and cons of formal performance appraisal system.
Pros
· It gives a more stable understanding of the employees in their daily tasks.
· It enables the managerial bogy within the establishment in association with the employees to come up with goals and objectives that should be achieved within a specified timeframe.
Cons
· The management may often feel guilty of evaluating their employees’ performance on a basis of their personalities instead of their accomplishments.
· The employees may perceive the management as condemnatory and biased.
Pros and cons of informal performance appraisal system.
Pros
· It provides more frequent and continuous performance feedback.
· This system is perceived to create an instruction organization technique instead of a commanding or forcible one which makes many supporters believe that it is a better than the formal performance appraisal system (Bednall.et.al, 2014)
Cons
· Frequent tally-based performance appraisals are mostly dispiriting to some employees.
· It could be difficult to carry out the performance evaluation on employees very frequently.
Benefits of combining components of a formal and informal performance appraisal system.
· Carrying out formal performance appraisals frequently is key to effective documentation of salary actions.
· Combining components from both performance appraisal systems provide a more effective system through which employee performance is well monitored.
· Employees get motivated when the performance appraisal system is both formal and informal. This is because the system is able to identify and reward the exceptional employees.
· It also promotes need for training. The performance appraisal helps in identification of the workers that need to be trained more.
· Moreover, such a performance appraisal system reduces the risk of particular employees from getting fired since the management is able to pinpoint some strengths in their skills that could benefit the establishment (Deepa.et.al, 2014).
· Judging and rewarding outstanding employees after carrying out this kind of a performance appraisal greatly impacts the establishment in that the employees tend to develop more as far as their skills and abilities are concerned.
In this way, I believe that combining components from both the formal and informal performance appraisal system is a good idea when incorporated in an establishment.
References
Bednall, T. C., Sanders, K., & Runhaar, P. (2014). Stimulating informal learning activities through perceptions of performance appraisal quality and human resource management system strength: A two-wave study. Academy of Management Learning & Education, 13(1), 45-61.
Deepa, E., Palaniswamy, R., & Kuppusamy, S. (2014). Effect of performance appraisal system in organizational commitment, job satisfaction and productivity. Journal of Contemporary Management Research, 8(1), 72.
Landy, F., Zedeck, S., & Cleveland, J. (2017). Performance measurement and theory. Routledge.