Performance Appraisal

4. Performance Appraisal

It is important for an organization in managing the performance to appraise the performance with the stated goals of the organization. Performance appraisal (PA) refers to the methods and processes used by organizations to assess the level of performance of their employees and to provide them with a feedback. (Dijk and Schodl, 2015).

The performance appraisal process could be beneficial both to the employer and employee. For the employer to identify the areas where improvements are required, encourage employee training and development needs, address the issues for low productivity are some benefits whereas for the employee ability to earn reward for better performance, identify areas where training is required, opportunities for career development are some benefits.

Traditionally performance appraisal starts as a process initiated by the HR department of the organization. Initially expectations of each employee is communicated then an assessment method needs to be decided. Then individual performance appraisal is conducted. The results of the appraisal needs to be communicated to the employee through an one on one interview. Finally future goals need to be agreed upon and training requirements are finalized. A signed off performance review is stored which is used for promotions, bonuses, trainings and planning.

However according to (Aggarwal and Thakur, 2013) there are various limitations of the traditional Performance Appraisal systems

• ·         Time Consuming and laborious
• ·         Supervisors could be biased
• ·         Difficult for employees to agree on goals
• ·         May damage self-esteem of employees if the feedback is brutal.
• ·         Prone to political and social games played by people.
• ·         Lack of rewards for good performance

Due to these limitations Performance Appraisal could affect following negative impacts on employees hence organizations such as Adobe, Microsoft, Deloitte and Gap have scrapped their annual performance review system. (Sarkar, 2016)

• ·         Employee Dissatisfaction
• ·         Discourages creativity of employees
• ·         Employee attrition
• ·         Excessive competition hinders team spirit

For performance appraisal to be successful following could be recommended (Daoanis, 2012)

1.      Effective reward system is strongly recommended in order to motivate the employees to work in the best interest of the organization.

2.      Proper feedback should also be done to employees so that they will be aware of their strengths and weaknesses for their improvements.

3.      An appraisal system should have a clear sense of direction, honest and meaningful feedback.

4.      There should be immediate and honest reinforcement and it should give an opportunity for employees to participate in setting the goals and standards for performance.

5.      Allow for continuous communication between management and teachers about job performance and should be geared for the total improvement of the organization as a whole.

6.      It is important that the appraisal system be consistent and that appraisal results be assessed, analyzed and reviewed to classify competencies and development needs across all departments.

 

References

Aggarwal, A. and Thakur, G.S.M., 2013. Techniques of performance appraisal-a review. International Journal of Engineering and Advanced Technology (IJEAT), 2(3), pp.617-621.Available from https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.679.2130&rep=rep1&type=pdf [Accessed 02 May 2022]

Daoanis, L.E., 2012. Performance Appraisal System: It’s Implication to Employee Performance. International Journal of Economics and Management Sciences, 2(3), pp.55-62. Available from https://d1wqtxts1xzle7.cloudfront.net/56514249/802af3a90064ca0dc196578574e07b5e79df-with-cover-page [Accessed 01 May 2022]

Sarkar, A., 2016. Is it time to do away with Annual Performance Appraisal System? Benefits and challenges ahead. Human Resource Management International Digest. Available from https://www.emerald.com/insight/content/doi/10.1108/HRMID-07-2015-0136/full/html [Accessed 01 May 2022]

Van Dijk, D. and Schodl, M.M., 2015. Performance appraisal and evaluation. In International Encyclopedia of the Social & Behavioral Sciences: Second Edition (pp. 716-721). Elsevier Inc. Available from https://cris.bgu.ac.il/en/publications/performance-appraisal-and-evaluation  [Accessed 01 May 2022]