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Performance Appraisal System

Ganiyat Odejayi

May 9, 2013

University of Maryland University College

Professor Donald Shalder

AMBA 620

Performance Appraisal System

Introduction

Performance appraisal system is one of the tools that are increasingly being utilized by the organizations for human resource management. This paper aims to discuss the purpose of the performance appraisal system and the requirements of an effective performance appraisal system. It then proposes a performance appraisal system keeping in consideration the requirements of an effective performance appraisal system. In the end, the paper describes some limitations of the performance appraisal system.

Context

The position under consideration is of a sales manager in a pharmaceutical company. The key responsibilities of the sales manager include achieving gainful outcomes by the product sales reps by creating the group through motivation, guidance, developing abilities and skills and product information growth. Sales manager is responsible to manage the product sales management function, functional performance accounting, optimizing procedures and methods wherever achievable, and suggesting senior management regarding capitalizing on associations of the organization and generating an atmosphere where client support can prosper. Sales manager is also in charge for supervising the product sales reps teams, creating a company proposal taking into account the product sales, expense and revenue measures, meeting approved deadlines and goals, and endorsing the existence and image of organization.

The sales manager also has to make sure that all salespersons’ actions are in conformity with the guiding principles of the compulsory code of conduct required as prescribed by the country’s law for medicine. The responsibilities carry on with the examination and supervision of the performance and activities of the sales reps by setting up a mechanism of reviews and interactions incorporating product sales reviews, recurring product sales conferences, product sales bulletins and electronic newsletters. Sales manager also has to individually watch the activities and results of the medical representatives in the field regularly. Another key responsibility is to offer high quality incessant training for the medical and sales representatives so that they have adequate healthcare and specialized information to deliver information regarding the products of the company in a precise and unbiased way.

Theoretical Framework

Performance of a business and its ensuing effectiveness and efficiency can only be obtained when the employees of the organization are consistently analyzed, evaluated and appraised for their performances. The incapability of organizations to put into practice a valuable mechanism performance appraisal has restricted them from getting competitive benefits which they need more at the present as compared to the previous times. Performance appraisal systems are mostly not organized and habitual and time and again recognized by individual impacts circumstanced by obsession of the companies and businesses to bring into play secret appraisal systems which prevent equity, fairness and attainment of original purpose (Obisi, 2011).

Performance appraisal or feedback system allows an individual to know where he or she stands in terms of performance. It also provides a direction to employees in terms of where they have to move. Performance appraisal system enhances creativity in the work of the employees (De Stobbeleir et.al, 2011). The purposes or rationales behind carrying out a performance appraisal system are widespread. Performance appraisal system in an organization is intended to get the feedback of the employees. It is also established in order to make significant decisions regarding key aspects. These includes trainings, merit based increase in pay, promotions, demotions or terminations (Peritz & Fried, 2008).

Another important purpose of the performance appraisal system is to foster communication and interaction between the employees and the managers. A performance appraisal system helps to let the employees explicitly be aware of the expectations of their supervisors and managers (Boice & Kleiner, 1997). A lack of such communication can create significantly adverse affects by impacting the performance of the employees. Performance appraisal system also aids in providing motivation and inspiration to the employees (Obisi, 2011).

Performance appraisal systems are also essential for identifying the needs of certain trainings in the organization. Therefore organization should pay special attention to the performance appraisal system just as the other systems and techniques in the organization (Wilson & Western, 2000).

Over and over again organizations pay no attention to management by objectives, decisive leads to the occurrences of individual discriminations. This kind of practice for performance appraisal is retrogressive as it has significant impacts on the entire performance of the employees. Organizations need to employ 360 degree performance appraisal system whereby supervisors appraise their workers, workers in turn also appraise their supervisors and managers and the appraisee also evaluates his or her performance. The average of all the assessments, evaluations and appraisal is determined to reach at the concluding outcome of the appraisal (Boice & Kleiner, 1997).

Performance appraisal system should not be considered as a one go process which should be left once the appraisal is done. Performance appraisal should be followed by a post appraisal analysis. Post appraisal analysis should seek to identify and review the positive and negative aspects as well as the advantages and disadvantages. Post appraisal system should also establish plans for future in order to enhance the performance of the employees more (Obisi, 2011).

Performance appraisal system varies from organization to organization. However, an effective performance appraisal system should follow certain basic requirements. The performance appraisal system and measures of an organization should be based on the overall objectives and mission of the organization. The ultimate goal should be to enhance the performance in order to achieve organizational goals. The performance appraisal system should intake the participation of all the employees. The system and the measures must be reliable and valid. It must be ensured that the measures for appraising performance are not biased because this would let the employees to be discouraged (Eremin, et.al, 2010)

Performance appraisal system is an imperative tool for employees’ development and growth and organizational success. However, it is in the control of human resource management and other leaders to instigate a system to analyze and review the performance of all of its employees in order to gain competitive advantages (Obisi, 2011).

Proposed performance appraisal system

As mentioned above and evident by a number of literatures on the topic there are some basic requirements for an effective performance appraisal system. The proposed performance appraisal system is described in this section. Initially a performance planning needs to be done. Performance planning will include the details such as the job description, the behavioral conduct, the targets and other similar information and details. Such performance planning needs to be done for all the levels of the organization. Once performance planning is done and performance standards are identified, organization wide meetings needs to be done in order to communicate effectively to each and every employee about the performance standard that he or she is expected to execute.

In the phase of determining the criteria and standard for performance appraisal ideas needs to be taken from the employees. This can be done by conducting online surveys from the company employees. This will help to set criteria that is not biased and that are valued by the employees. Moreover, all the employees should not be judged on the same criteria. Performance criteria need to be tailored according to the level as well as the capability of an individual. Experienced and new employees should not be evaluated on the same criteria because of the difference in the level of expertise.

The performance appraisal measure that will be employed will be multi rater or 360 degree. This will includes reporting from all the levels for every individual. Moreover, employees’ performance will be rated on multiple criteria. This will not include only the current work performance, but previous performances as well as behavioral conduct and contribution to organizational activities.

The communication of the performance standards will be done on regular basis by the team leader or the department supervisor throughout the organization. This will avoid the problem that often arises by the employees complains of not being aware or communicated about the performance standards. Then collection and gathering of data and information for performance appraisal will be done. This will also be a continuous process. The rationale behind this is that if the performance is evaluated at the end of the month, then there is a possibility that some employees might pretend to work better. By evaluating the performance and actions of the employees on a regular basis, will enable to more accurately analyze and appraise the performance.

Evaluation of performance on a regular basis for the purpose of performance appraisal is also significant to employees’ satisfaction. This will allow preventing any biasness or prejudice against any of the employees. Moreover, it will also help to know that which employees are working hard but are not able to execute better performance. This will help to point out the problem areas and will provide an insight into the type of trainings required.

After the data is gathered, performance appraisal and recognition will be done in a visible manner. This means that the recognition of the performers and contributors will be done by arranging a small scale organizational event in the start of every month. This will make the employees who got appraisal feel motivated. It will also act as an inspiration for other employees to perform better next time.

After performance appraisal, the data gathered will be analyzed to identify the problems. At this stage, employees’ feedback will be taken again to come across any prejudices that might possibly have occurred on the departmental level. Becoming familiar with the grievances of the employees will help to address those problems and eliminate employee dissatisfaction. Corrective actions will be taken to remove the errors and faults that has occurred in the previous appraisal system and identified by the employees or the management.

Conclusion

Literatures and findings suggest the essential need for organizations to develop and implement effective performance appraisal systems. The paper described various aspects that need to be considered while designing and implementing a performance appraisal system. The paper also proposed a performance appraisal system. There are always some limitations in the fair implementation of the performance appraisal system. Some biasness always arises at the departmental level. Moreover, using previous performance as one of the criteria can over shadow the current performance of an individual who previously did not perform well. The implication for my career growth is that it is important to grow in an organization and career. Performance appraisal is a tool that is now widely used by organizations. So in order to grow professionally, I have to always assess my performance by myself so that any lacking can be corrected at the individual level before it is recognized on an organizational level.

References

Boice, F. D. & Kleiner, H. B. (1997) Designing Effective performance appraisal systems. Workstudy, volume 48 No. 6, pp. 197-201. Data retrieved from http://cfl.ctu.edu.vn/learningresource/ebooks/1.pdf on May 10, 2013

Cascio, W.F. (2013). Selected material from Managing Human Resources: Productivity, Quality of Work Life, Profits (9th ed.) custom published for University of Maryland University College. Boston, MA: McGraw-Hill Learning Solutions.

De Stobbelier, M. E. K., Ashford, J. S. & Buyens, D. (2011) Self-regulation of creativity at work: the role of feedback-seeking behavior in creative performance. Academy of Management Journal Volume 54, No. 4, pp. 811–831.

Eremin, V. D., Wolf, F. J. & Woodard, A. C. (2010) Systemic bias in federal performance evaluations does hierarchy trump a performance management Process? Public performance & management review, volume. 34, no. 1, pp. 7–21

Obisi, C. (2011) Employee performance appraisal and its implication for individual and organizational growth. Australian journal of business and management research, volume1 No.9, pp.92-97. Data retrieved from http://www.ajbmr.com/articlepdf/AJBMR_16_10i1n9a10.pdf on May 10, 2013

Peritz, H. & Fired, Y. (2008) National values, performance appraisal practices, and organizational performance: a study across 21 countries. Academy of Management.

Wilson, P. J. & Western, S. (2000) Performance appraisal: an obstacle to training and development? Journal of European Industrial Training, Volume. 24 Issue 7, pp.384 – 391. Data retrieved form http://www.emeraldinsight.com/journals.htm?articleid=837033&show=html on May 10, 2013