UNIT XV PERFORMANCE APPRAISAL AND MANAGEMENT
15.1 Introduction
15.2 Objectives
15.3. Performance Appraisal: Concept and Definition
15.4. Performance Management: Concept and Definition
15.5 Performance Management vs. Performance Appraisal
15.6 Purpose and importance of performance appraisal
15.7 Objectives of Performance Appraisal
15.8 Process of Performance Appraisal
15.9 Steps of Performance Appraisal
15.10 Approaches of Performance Appraisal
15.11 Methods and Techniques of Performance Appraisal
15.11.1 Traditional Methods
15.11.2 Modern Methods
15.12 Biases of Performance Appraisal
15.13 Summary
15.14 Glossary
15.15 Answer to Check Your Progress
15.16 Reference/ Bibliography
15.17 Suggested Readings
15.18 Terminal & Model Questions
15.1 INTRODUCTION
Today, performance appraisal is used for developmental and motivational purposes in the organization. It is not a stand still evaluation activity, but a dynamic process which should be viewed as follows- planning the employee’s performance and evaluation, and improving the performance of employees. The process brings the new concept Performance Management. Performance Management is essential for today’s organization to integrate the management goals and employees performance. It is a system for integrating the management of organization and employee performance in order to support and improve organization’s overall business goals.
In this unit, you will study about performance appraisal and performance management
Performance appraisals, performance reviews and/or appraisal forms are a part of the performance management process. In general, performance appraisals are not favored. People in organizations would prefer not to be advised they did not do tell this year compared to the previous years. Managers would prefer not to put themselves in a scenario that could possibly turn into an argument from an employee about a performance appraisal that was not that great. If the ultimate goal of a performance appraisal is employee development and organizational improvement, we have to consider moving to effective performance management system to avoid any conflicts. The successes of performance management strategies sound favorable to many, however, there are managers and supervisors that make decisions that affect the moral and performance of the employees. Moral can become the heart of an employee’s motivation to succeed and be happy at work.
Performance appraisal is a method which is increasingly used to evaluate employees to determine the degree to which they are performing effectively and encourage them to direct their energies towards organizational performance. Although the appraisal is being practiced, there are criticisms made against the system which generally arise from within the Orthodox and radical management frame work.
A performance appraisal is one of the most important factors in any organization and can be one of the greatest tools used to record employee production. Every organization has to have goals and objectives established and the employee has to be involved in this process. By conducting performance appraisal will improve productivity and also the morale of the employees.
* Plan: need to clearly identify what performance is required and how it will be measured
Using the concepts of performance management and organizational goals, develop an argument regarding the relationship between the two (2) concepts. Be sure to include discussion regarding the impact of one to another and the challenges presented.
In an organization employees are the important asset and play a significant role in the progress of an organization. Nowadays firms usually focus on the human capital in the form of the employees by giving them training, assisting them in career development and also work on performance management in order to keep the employees motivated and dedicated by giving them feedback through performance appraisals. Through these performance appraisals the employees are informed about their strengths that they can enhance and about their weaknesses that they can improve in the future.
Performance management is the process through which managers ensure that employee’s activities and outputs contribute to the organization’s goal (Gerhart, Hollenbeck, Noe, & Wright, 2009). Effective performance management can tell top performers that they are they are valued and encourage communication between managers and their employees (Gerhart, et, el). This process also establish consist standards for evaluating employees and help the organization identify its strongest and weakest employees. The performance process have six steps to show how an organization accomplish its goals. Steps one and two involve knowing what and how the company ‘s strategy to reach its goals. The third step consist of the organization training its employees and engageing in on-going feedback between the employees and managers. The fourth step involes the manager and employee on knowing if the goals are reached are they getting the results that are set out for. Finally, the last goal will be for the manager to identify what the employee can do to capitalize on performance strengths and address weaknesses. The effective performance management techniques for the CEO and average workers are that one task are bigger that the other. The CEO have to make sure all the managers are meeting the performance measure where average workers have to only be concerned about their individual job duty. These are some of the
There are so many focuses or themes that I might construct on my individual paper on ‘Developing high performance working’. One of them is functions of performance management; this will include strategic, administrative and the developmental. According to (Baron and Armstrong, 1998 cited in Bloisi, 2007:254), they “emphasise and integrated nature of performance management”. The second one is the administrative function; several organisations nowadays use performance management to evaluate employees about their salaries, retentions, redundancies and individual performance. Lastly, the developmental function should enable managers to identify where employees are not performing well and how they can improve it. Additionally, I will be explaining the performance appraisal and how does it process. According to (Bloisi, 2007:259), performance appraisal is the “process of measuring and evaluating employees’ performance. It can be a useful tool for employee development”. Dealing with poor performance is another topic that I will include in my individual paper; managers have to identify employees with poor performance, so they can take an action on them. Lastly, I will include performance management and how managers can administrate performance within the
The employee should reflect on his/her career goals. However, as most HR professionals know all too well, supervisors lack in preparing and conducting performance appraisals, especially in a timely manner, often merely from a lack of understanding of the critical nature of the performance appraisal process (Tourish & Robson 2006).
Performance appraisal is essential to understand and improve the employee’s performance through HRD. It is viewed that performance appraisal was useful to decide upon employee’s promotion, transfer etc. But recent developments in HRD indicate that performance appraisal is basis for employee development. A performance appraisal is a systematic and periodic process that assesses an individual employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives. Other aspects of individual employees are considered as well, such as organizational citizenship behavior, accomplishments, potential for future improvement, strengths and weaknesses, etc Performance
Performance management is an essential tool for a company. It creates the opportunity for the individual success of all its employees, and therefore the longevity of the company to prosper. Performance management creates a point of reference for the employee to see where they stand performance wise, and gives the employees the insight to see where they can strengthen their productivity. The following paper will highlight and demonstrate the potential and importance of performance management. Furthermore, the paper will contain a job analysis process that will further identify the skills needed by employees, methods used for measuring those skills,
The definition of the term ‘performance management’ varies in different literatures. As Hutchinson(2013) summed up, combined with Den Harton’s theory(2004), it is a continuous process which links individual and team objectives with organizational goals by measure and improve employee’s skill and performance. According to Armstrong (2012), human resource management aims at making sure the organization has the most talented, skilled and engaged people in order to attain its goals. In this context, performance management is one staple practice helping managers identifying and retaining most competent employees as well as correcting poor performance.
In the route of providing criticism, managers and employees may recognize performance objectives that need to be established and find ways to resolve those problems. Performance Appraisal is an important part of performance management and it needs to be brought to the forefront of the HR dept. so that managers can access and give feedback on what is wrong with each department as well as what and employee may be lacking.
According to Hyde (2004), performance management is a group of guidelines utilized in refining productivity, handling workplace behavior, training and development of staff, and providing positive feedback on a regular basis. A good employee performance management system entails components that help employers concurrently accomplish goals and sustain employee satisfaction. Performance management allows a business to identify strategic goals, and measure/manage performance against those goals. It contains a set of incorporated management and systematic methods that deal with financial and operational activities.
Research has identified a gap amongst the managers and employees’ perception about performance management theory and its actual practice (Bratton J. and Gold J. 1999). In practice, most organizations do not employ the performance management process to its full capacity in motivating employees (Morris et al. 1991). Though in theory, the general acknowledgment that performance management is a tool used to promote employee understanding of its contribution to organizations strategic goals; while also ensuring that the right talent and skills are centered on the things of importance. Yet in practice, it is regarded as just a documentation phase that is used to fulfill basic organizational and statutory requirements (CIPD 2009). In simple terms, performance management can be described as a strategic part of human resource management; which is an all-inclusive process that aims to bring together various aspects including performance appraisal (Boxall and Purcell, 2003). Noticeably, an important aspect of performance appraisal is enhancing performance, which is a key element of organizational life and performance