HRMT300 U4Ip

Performance Appraisal System

Performance appraisal is the form of evaluation associated with the judgment of the rater regarding the effectiveness of an employees performance in a job. The performance measure in this can be subjective or objective. An objective measure may involve the number of dollars sold and the produced units or secured contracts. A subjective measure may be a qualitative judgment of a creative work of products and supervisors or even ratings from peers for general job performance (Boipono, et al, 2014). The ultimate goal of a performance appraisal system is to increase the effectiveness of job performance by employees. Therefore it is important for any company to develop the system to improve performance.

A performance appraisal system is made up of job performance and disciplinary reviews or in some instances training and employee development measures. The system has several purposes including evaluating how efficient an employee executes the prescribed job duties and responsibilities as well as measuring the abilities in related soft skills like leadership and supervisory abilities, managing the relations at the workplace and also skills in conflict resolution. The performance appraisal system can as well measure productivity, specifically in the manufacturing field where quantitative measurements are vital for the success of the business. One of the greatest complaints from workers in a company is lack of communication which can be resolved through the development of a performance appraisal system by boosting communication between the staff and the leadership by promoting feedback and dialogue.

In an organization, any performance system comprises of certain components including performance planning which is the basis of performance appraisals. Other components include performance appraisal and reviewing, feedback about the performance which is usually followed by individual counseling and performance, rewarding the best performances, the improvement plans and finally potential appraisals which forms the foundation for both lateral and vertical movements of the workers (Aggarwal, & Thakur, 2013).

According to Adams & Evans (2004) accountability aims at making better utilization of developing standards for the purpose of just reporting general performance. The main intention of accountability is providing support to companies and their relevant stakeholder towards the delivery of various dimensions of responsibilities like environment, social and economic while undertaking several functions. In a company, accountability interacts with the transparency principles along with the incorporation that establishes general performance by upholding various ethical values and adhering to relevant norms as per the set guidelines. Through accountability, certain important activities can be undertaken that ultimately helps in improving the overall performance. Where accountability is used, activities like effective decisions and taking significant and also immediate actions and others can be made, which is a primary determinant of improving the general performance.

Managers and employees always ask why their various organizations conduct employee performance appraisal. Any person who has been on the receiving end of the system may have their reasons as to why they perceive the system as ineffective and a total waste of time. Employees tend to feel unfairly assessed and managers usually undergo through a compelled annual process to comply with the expectations of the job. It, therefore, does not make it easy for either party. Nonetheless, the performance appraisal system has its advantages and disadvantages. Among its advantages is that the process develops a structure where an employee can discuss his/her performance with the manager (Solmon, & Podgursky, 2000). it usually causes the necessary difficult conversations to happen. It also provides a structure through which one can think and plan for the next year as well as developing employee goals. It also makes clear the expectations of every employee. On the other hand, the system creates a negative experience if it is not done as per the guidelines. The system is time-consuming and can as well be overwhelming to the managers. The process is usually biased. Human evaluations are subject to natural biases that lead to errors by the rater. The primary advantage of a performance appraisal system in a matrix organization is that the statistics used can as well as be used to evaluate the success of the company's recruitment and also the induction process. The employees will also feel motivated if they are supported by a system that is merit-based.

References

Adams, C. A. & Evans, R. (2004). Accountability, completeness, credibility and the audit expectations gap.

Greenleaf Publishing, 97-115.

Aggarwal, A., & Thakur, G. S. M. (2013). Techniques of performance appraisal-a review. International Journal of Engineering and Advanced Technology (IJEAT), 2(3), 617-621.

Boipono, M., Tsomele, T. G. & Mogadime, R. (2014). Implementation of Performance Management System (PMS) In Schools: Success Factors.  International Journal of  Research in Applied, Natural and Social Sciences, 2(5), 189-194.

Solmon, L. C., & Podgursky, M. (2000). The Pros and Cons of Performance-Based Compensation.