How To Conduct An Appraisal Commerce Essay

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There is no one right way to conduct an appraisal. Some companies develop an appraisal form with space for appraisers to rate appraisees on aspects of their work such as their contribution to the team, role development, effectiveness, etc. The approach will depend on the nature of the business and the people involved. However as a minimum it is helpful to have a form to collect consistent information on the appraisal. This may be in the form of a free dialogue from appraisers with the opportunity for appraisees to reply and comment.

Human Resources planning can be seen as a structured approach to planning the long and short term human resources requirements of the business. It focuses on employee management and development to achieve organisation strategic goals. HRP addresses employee skills, competencies and experience to do the job. Identifying employee performance and development in order to deliver and achieve effective results to the strategic plan of the organisation. ''Human resource planning is based on the belief that people are an organization's most important strategic resource.'' Michael Armstrong. HR planning can also be termed ''manpower planning'' which solely looks at the supply and demand of staff to organisation. This reduces problems such as over staffing or understaffing the organisation staffing requirements. HR planning contributes valuable information to the HR function in areas such a recruitment and selection, training and development, performance appraisals, promotions and along with redundancy plans. The plan gives a pragmatic view of how the organisation will go about improving the problems and developing staff from managerial to operational level. HR planning can identify the need for training and development for staff to strengthen their workforce and reach the skill level the organisation needs. In today's recessionary environment organisations have to remain competitive, up to date with technology along with government and industries regulations that may affect the organisation future. Preparing and forecasting for such organisational changes can be separated into hard and soft approach to hr planning. The hard approach is quantitative planning of staff required short and long term and recruiting staff with the correct skills and knowledge to do the job effectively. The soft approach is explained by ''Marchington and Wilkinson (1996), ''is more explicitly focused on creating and shaping the culture of the organisation so that there is a clear integration between corporate goals and employee values, beliefs and behaviours'' Michael Armstrong.

HR planning can be hard to implement as budgets need to be set out and targets to be achieved. As the future is uncertain to predict for organisation the strategic business plan may take precedence over the HRP. Conflicting issues may arise between managers and hr manager with regards to short and long term goals. Training may be interfered with pressure for work to be done immediately. Manager would have the view skilled works are now available within the market to hire immediately without the need for training. To operate a successful HRP hr manager and management have to work together and with the same goals to be achieved. Organisations that are aware of their changing environment and take a professional approach will benefit from this forward planning. It looks to strengthen manpower that exists and tackle issues such as high staff turnover. It is important for organisations to evaluate the effectives of organisational changes, processes and procedures put in place through the HRP. Monitoring organisation and environment changes through the implementation of the HRP will impact its full potential.

To what extent is it worth undertaking human resource planning (HRP) activity in the face of economic and business uncertainty?

The present economic environment has provided tough challenges for businesses across all industries. It is important to preparing the business and the workforce in the best way possible to sustain the business survival. As we know ''by failing to prepare, you are preparing to fail'' Benjamin Franklin''. This quote can be expressed in the same way for a business not undertaking HR plan in preparing for the difficulties and uncertain times the future holds. As the world's business environment is changing fast the market is demanding a lot more from businesses in their services and products to remain competitive. This is where HR planning is more important than before to impact the business strategy. It is critical for a business to become innovative to new ideas and a wiliness to adapt to the changes in the present environment.

When faced with recessionary uncertainties a business should use all its resources to plan towards the future. Depending how advance a business HR policies and structures are undertaking a HR planning can help make the right decisions and aid the business strategy.

The focus for human resources plan is to plan business requirements through possible ''scenario planning'' ''described as a formal strategic technique''. It can be used to analyse past trends and future changes in the ''internal and external environment''. The HR plan must strategise towards the economic climate and try to establish what the future demand will be and the surplus workforce of the shortage of that demand. ''Scenario planning'' can be done by assessing and estimating future developments through the external environment and examining the business plan if provided of the organisation. Also discussing with management their business expectations, budgets and department workforce needs. Each business is different in what level their organisation is at with forecasting using past and predicting future requirements. The following are factors to consider when forecasting to the future.

Determining future demand:

Workforce forecast demand examines the long term business plan, reviewing budgets and making the decision towards downsizing a business due to the shortage of demand of the product or services. With a surplus of employees it creates a power shift as employers gain sole ''bargaining power'' in the business. It is important to consider if training and development was invested in a organisation. Ensuring highly skilled and knowledgeable employees are not let go unduly because of incorrect business planning towards the future. This could result in a major cost to a business for failing to look to the future of its workforce and business. To prevent this happening ''forecasting techniques'' can be used to provide a estimate of the future demand.

Management specialist judgement: can contribute towards a more accurate development of the future forecast. Predicting and using what business is the pipeline to estimate what workforce demand is needed and not needed.

Ratio - trend analysis: this type of technique can be done by studying previous ratios of workers to a particular job or supporting a line assembling a product. By doing this management can predict what labour is needed for expected or existing business. Work study techniques: Looks at how long a job takes and examining previous ratio analysis when forecasting business labour needs. ''Forecasting skill and competence requirements:'' This is a careful management analysis of the need for labour vs. ''information technology or computerised manufacturing.'' The above techniques is analysing the overheads and workforce measures that can be used as a cost saving measure for a business. There is an alternative to when examining the workforce surplus for example ''Corus Steel announced it aims to achieve 2500 job losses through voluntary redundancies in the UK''. (BBC 2009)

Supply Forecasting:

Due to the recession there is a large supply of highly skilled individuals that are available to employers. The opportunity to gain skilled and knowledgeable employees at lower salaries then was previously given to employees. Looking at flexibility of existing staff and their knowledge of been able to work on other jobs. Examining internal staff and their potential and restructuring of department with promotions and cost saving employee conditions. When examining the surplus of staff looking at temporary staff and retirement age employees that are not needed. In times of business uncertainty to prevent a business from closure management may ask for employees for flexibility in the short term when business forecast is unclear at the present moment. Flexibility to production for example ''Honda pays its workforce a minimal wage if they are out of work. This means the company retains the work force without a big overhead at difficult times''. (Swindon Advertiser 2009)'' Highlighting a reward scheme e.g. (pay reward) for a workforce flexibility when employees achieving high levels of performance in their role. This will result in providing high levels of performance from all staff. It is important to also motivate employees although faced with tough economic uncertainty of the business.

Human resources planning can be seen as a laborious and time consuming but as our market environment has become highly competitive organisation must develop and react to market changes to remain competitive. HRP can sometimes be perceived as task and bureaucratic driven and not also seen as strategic based. It is important to point out workers provide productivity and profits for a business by understanding them and their value to a business success. A HR system can measure and provide necessary information to facilitate a HRP to serve the overall business strategy. Each organisation has different business needs choosing to invest in a well planned HR plan will strength and prepare its workforce and organisation needs in order to remain competitive in the good and bad times.

3a) Identify and explain the difference between a performance management system and performance appraisal?

Performance Management System is strategic management drive in achieving high levels of organisation performances. The performance management system focuses on the individuals, teams and the organisation. ''Armstrong and Baron defines performance management as 'a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance.'' As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved'. The strength of the strategy of PMS is closely linked to the Human Resources policies, procedures and culture of the organization. Along with having a good HR framework having a developed communication systems will enhance the value of the performance management system. Performance management is management owned it sets out by establishing performance goals, standards and competing requirements. Performance appraisal has important function within performance management system but individually both have different roles to play in the organisation. In contrast performance appraisal is individually focused on employee's performance and development and is usually conducted by line managers. Performance appraisal is a review of a person behaviour, performance and development over a certain period of time by their by manager. It also gives the individual opportunity to review their own situation either with concerns of their own or a chance to speak openly to their manager on how they can contribute their services more effectively to the team. Performance appraisal can be seen as a method of building relationships and valuing staff views and their career development. Organisations differ in their performance appraisal practice but it is important to assessing individuals against targets and setting out agreed objectives. It is important to have to discuss and agree on issues that are needed to be improved by both the individual and manager. The manager conducting the appraisal must be open and approachable with individual issues and views. It is equally important that the individual is provided with accurate feedback on their performance and progress. Feedback should be constructive and relevant to the appraisal and also a value on individual work should be highlighted that has been done well and has contributed to the team or organisation. Training needs did the individual received training and how they benefited since they received the training. What training and development is required or if the individual would like to receive training. It is important to keep track of what has been said in the appraisal and notes taken on the conversation and on issues highlighted or need to be addressed by the individual or manager/appraiser. This will help keep track of the person performance and progress. While performance appraisal provides important process to performance management but as a standalone identity it is limited in relation to what PMS can provide to the overall organisation. PMS is a continuous cycle looking to the long term strategic business goals of performance and development of the organisation, each department, management and individuals. The organisation employees from top down must understand the objectives and what is expected from them in order to support PMS. HR management must determine what level in terms of culturally, performance and development and individual skill base to meet the objectives set out to be achieved. How managers and individual adopt to the system will determine its success.

3 b What do you understand by 360 degree feedback. Identify the key features of 360 degree feedback, advantages of such a system and also some of the difficulties?

The term ''360 degree feedback'' is the 360 degree circle which refers to the feedback from all the people that work with the employee to give their feedback on his/her performance. The term ''360 degree feedback'' can also be called ''multi - rater feedback'', ''multisource feedback'' or ''multisource assessment''. The results of ''360 degree feedback'' can be linked to rewards such as pay, promotion and identifying training and development. "However, there is a great deal of controversy as to whether 360-degree feedback should be used exclusively for development purposes, or should be used for appraisal purposes as well (Waldman et al., 1998). The systematic collection of data on individual employees work and performance is a confidential process where feedback comes from employee's manager, supervisors, peers and subordinate. The process involves 8 to 9 colleagues along with the employee to fill out a questionnaire based on the individual performance. The questionnaire document consists of a'' number of statements rated on a scale'' and space for additional comments on the employee. It is common for different terminology to be used in the feedback sheet for example 'rater', 'ratee', 'appraiser', 'appraisee' and 'respondent'. The questionnaires data is usual complied and analyses through software development within the organization or provided by ''external supplier''. The data is then produced in the best way usually in graphical presentation of data to establish the areas where the employee scored high and low. It is important to carefully design and implement a 360 degree feedback function that meets the objectives set out to obtain the correct and relevant information of the employee been assessed. When feedback is broadened to customers, suppliers this kind of feedback is known as ''540 degree feedback''. Another form is known as ''180 degree feedback or upward feedback'' this method can be seen in ''performance appraisals'' where managers give feedback from direct work from employees.

When designing a 360 degree feedback some considerations should be work out in the design stage starting with setting clear objectives of what should be achieved from the 360 degree feedback. How will the 360 degree feedback contribute to personal development, appraisals and performance related pay. As feedback is usually anonymous determining who will provide the information (feedback) on the employee e.g. managers, supervisors, co- workers, internal or external customers. What areas of the employee competencies and performances will be asked how in-depth will the questions be and will the questions tie in with cultural values of the individual performance. How will the information be used either to improve areas or establish the cause of problems that were highlighted through the feedback process. It is important to establish what type of collection of data method should be used questionnaires are commonly used in collecting data. Questionnaires can be designed within the organisation using a special software system installed in the organisation or a consultant/provider that designs questionnaires at the organisation specification. Questionnaire questions should be designed in a clear, short manner and specific to the individual's role. The 360 degree feedback will be a new concept to some ensuring employees and people participating in giving feedback have understanding of the importance and benefits that can be achieved through the 360 degree feedback. A training system for people providing information to ensure to the 360 degree feedback is used effectively. The feedback system should be analysis ongoing basis or if changes are needed to improve the system. There will be a certain amount of monitoring of participates accurate feedback and if support or training is required for participates.

Key benefits of 360 degree feedback: Feedback provides individual employees with overall perception of how employee is perceived by people they work within the organisation. It provides a more self awareness of one self and also provides a more rounded account of individual performance. It provides management a better knowledge of how they can enhance their performance, leadership skills and awareness of how they impact the employees they lead. It also looks at what development needs are required within their position. It can promote and improve team building and behaviour along with more open communication and feedback. It provides a standard within the organisation of what is expected from employees. Feedback reports are computer based reducing administration work load. As feedback is confidential individuals will be open to give their own feedback regarding issues of their own or within their working environment. It helps individuals understand their weakness, abilities and career development. It can quickly determine the strengths and skill level of an organisation workforce. It also promotes a progressive environment for employees and for individuals to take feedback in a positive light so as improve on their performance.

Difficulties and of 360 degree feedback: When collecting feedback it may be hard to measure how honest and accurate the data is from employees. Rater may be influenced by employee factors (in case the individual/ratee may lose their job over the comments or rating the rater gives in their report). It is important management understand the process and perceive the method to be fair. Training may be required for managers to educate them on the purpose of 360 degree feedback. It is suggested that management ''extent of cynicism will impact the decision on whether to proceed with the implementation of a MSF process in the first instance''. Managers will perceive the method as ''another management initiative that will have little impact on their learning and development''. (Alma M. McCarthy Thomas N. Garavan paper) It is important management lead by example and delivery and practice the benefits feedback can provide individuals on their performance. Determining has the organisations barriers and limitations of human resources intervention will this impact on adopting the 360 degree feedback process. The confidentiality aspect to the process is extremely important for employees to believe and trust the process. Ensuring information gather on individuals through reports and feedback are safely filed. Raters must be skilled in giving feedback to individuals as providing sensitive information regarding weaknesses of performance also understanding report results from feedback is important to interpret to individuals. It is important to choose correct feedback method e.g. questionnaires to measure individual behaviour, job performance needs to accurately. There may be too much reliance on technology as it is report based. It is important that feedback is used and followed up with the individual.

4a) Should pay and performance be linked?

Performance - related pay (PRP) can be seen as important part of performance management as it acts as a motivation element to employee's performance and competences. The concept of PRP was first introduced in the 1980's to employers as the '' the holy grail of driving high performance''. Employers wanted to move away from ''service related pay and work towards individual or group employee performance goals often linked to pay''. Since the 1980's when the PRP programme the programme has been given a new approach with past PRP programmes failing to give results. The program now links pay to not only to performance and what business output was achieved by the employee but how a ''employee has contributed in a more holistic sense''. The rationale to performance related pay can be seen to promote and achieve high performance by linking performance to pay. The PRP system can influence organisational change and have a knock on effect on performance management and development. The PRP can encourage a ''high performance culture '' setting standard levels for employees to achieve and maintain in their role. PRP is broadly favoured among employees who perform better at work. The idea that all employees would agree with the statement that employees who perform better should be rewarded for their performance are not so as according to the CIPD website. ''The latest employee pay attitudes survey finds that 60% of private sector workers would ideally like their rewards to reflect their performance. By contrast, just 36% of public sector workers would like their pay to reflect their performance''. The survey would suggest the public and private employees have different methods of working with PRP system. In the private sector it is generally the norm to use individual PRP in performance management where pay is linked performance appraisal rating known as the ''all merit'' award. Whilst linking pay to performance in the public sector it is structured in a ''non- consolidated bonuses and/or team - based incentives.'' It may be difficult to measure certain professions roles in the public sector for e.g. nurses '' nurses are arguably motivated by a public service ethos which could actually be undermined by some forms of PRP''. But the PRP system could benefit the public sector with employees' performances working more effectively to their goals/objectives than just working harder to meet the pay scale. HR managers have concerns regarding employees training and development needs within their role as employees will feel PRP would be affected if raising such training needs. It is important to ensure a well planned PRP system with clear objectives which employees understand and can achieve towards. A badly designed PRP system may lead to employees not wanting to engage in team work activities in order to achieve their individual PRP award. This can be avoided by ensuring the system is achieving it goals and objectives through its chosen design and appraisal system to benefit the organization. PRP system can stagnate when recession hits organisation as a business cannot afford to give pay increases for a period of time. This could lead to a fall in performance but a recession can have other implications with job loss if the organisation is under achieving production and profits. Employees will have to work just as effectively as before but without the pay increase for their efforts. Pay and performance link can be a very effective arrangement for organisation. The success of the PRP system is how it defines its objectives to best achieve overall employee performance for the organisation. Firstly ensuring employee's performance is correctly measured through correct appraisals system and performance management. Structured financial rewards for employees who meet these objectives will motivate and promote high performance from organisation employees.

4 b) Brown and Heywood (2005) identify a number of determinants of the existence of formal performance appraisal systems for non managerial workers- identify and outline 2 of these and give a synopsis of the findings of Brown and Heywood?

The journal Brown and Heywood (2005) identified the determinants of formal performance appraisal system using the 1995 cross - sectional and panel data from the AWIRS. With use of economics of personnel and strategic HRM literatures, they predicted ''organisations are most likely to operate a performance appraisal system for non - managerial workers''. The determinants of formal performance appraisal systems can be seen in four broad categories: workforce characteristics, job control, HRM practices and structural feature.

I have chosen to identify workforce characteristics and HRM practices in Brown and Heywood journal. Their work through workforce characteristics suggested that performance appraisal process of non - managerial employees within the organisation is correlated with short - tenure workers. They examined workers motivation towards performance appraisal under their expected tenure. Workers with longer expected tenure are motivated by deferred rewards of their efforts reducing the need for monitoring. It also reduces the threat of losing good valuable workers to other companies. The study suggests that longer tenure workers commitment to appraisal system involves the engagement of workers organisational goals and employee development plan. Organisations with shorter expected tenure workers are seen to engage in formal appraisal systems as their interest in monitoring performance and rewards for their performance. The paper suggests these last two points sit inertly with performance appraisal function to workers. There are other proxies of workers expected tenure of casual workers, female workers and worker turnover. Goldin (1986) '' has argued that because of their shorter expected tenure, women are less likely to be as motivated by the deferred rewards of career ladders''. This explains appraisals systems operating in organisation with high female percentage. Casual workers can be seen as having a decreased use of performance appraisals as they have shorter term attainment along with low employment protection. But it has been stated that casual workers '' increase use implies greater expected tenure for the core labour force''. (Heywood 1995)

Through HRM practices performance appraisal is seen as identifying job design, training workers, joint consultative committee along with individual performance related pay. The paper suggests that ''redesign of jobs serves to renew the importance of the allocation of workers across jobs and increases the value of performance appraisal''. (Heywood & Brown 2005) This falls in line with what has been stated in workforce characteristics as long tenure workers in a specific role will see fewer benefits in formal performance appraisal system. Where training is been provided to employees there is a need to evaluate its benefits and will in turn benefit and have a positive effect on performance appraisals. Performance appraisal systems can see many benefits too productively. Individual performance related pay to performance appraisals can be delivered where performance can be measured. ''The alternative to defer compensation and hence associated with short tenure workforce.''(Heywood 1997)

The findings of Brown and Heywood's paper through their 1995 cross section of Austrialian workplace industrial relations survey (AWIRS) finds that through there sample data that 70 per cent use formal performance appraisal system in 1995. Through a pattern of results in table 2 of the paper performance appraisal is associated with women workers and without large shares of long tenure workers. Casual workers have a negative association on performance appraisal ''supporting the view that they provide security and greater tenure for core workers''. A significant determinant was established if firms had plants in states of Australia ''beyond that of respondent often emerged as a significant positive determinant of performance appraisal''. Workers who have greater levels of autonomy over productivity and tasks work under a performance appraisal system.

A sub - sample was established in 1995 cross - section the information taken indicates whether or not the establishment has performance appraisal for its non - managerial workers. But ''it does not indicate what share is non- managerial workers are actually subjected to appraisal''. There was four categorical responses 'none', 'some', most', and 'all' and set at 0, 1, 2 and 3 the finding suggested that 139 indicated that some non - managerial workers were formally appraisal. ''The sample size after removing observation with missing data is only 559 the result is with characteristics of the workforce and the method of job control continuing to be important determinants.''

(Brown & Heywood) As far as HRM practices, workers will participate in performance appraisals if there is job redesign, individual performance related pay and joint consultative committee (JCC). The paper also suggests (Brown & Heywood) ''the presence of HRM professionals nor unions plays a role in determining the presence or absence of a performance appraisal system''. There is strong performance with workforce characteristic variable workers with longer tenure were less likely to involve themselves in performance appraisal and that female workers involve in monitoring. This would mean there is increase need to monitor those with short tenure can they do not see the merit in deferred compensation. Brown and Heywood '' anticipate the opposite result arguing that atypical work for some makers for greater employment continuity for others, namely, the core labour force''.

Changes in use of performance appraisal in 1990 427 of 697 establishments reported that formal performance appraisal system for non - managerial workers. The number from 1990 increase to 505 in 1995 survey but the pattern findings that 91 establishments that had performance appraisal in 1990 no longer uses the appraisal in 1995. It is also reported that ''high turnover rates are significantly more likely to have performance appraisal systems after correcting for fixed effects''.

Heywood and Brown study shows that performance appraisal ''is popular, its use shows definite patterns and, as a consequence, it is unlikely to be used for all non - managerial workers''.

5. How would you organise and conduct a performance appraisal/review from the point where you notify the employee through the interview to the action to be taken after the interaction. In your answer make reference to such things as communication skills needed, structure of the review, giving and receiving feedback and style/type of appraisal?

Performance Appraisal is a process where employee performance is assessed by their manager on a six month or yearly bases but is usually yearly. It is formal process and structured system that evaluates employee performance to established standards. Performance review as it is sometimes called should demonstrate objective criteria for measuring or assessing employee performance against agreed targets and standards. Providing feedback to employee on how he/she is performing through ratings that summarize their performance to date. It is also important that within the time given for performance appraisal that the time is an open discussion for employees views and opinions. To discuss individual training needs, ideas expressed on improvements to the individuals work or team environment. It is important to ensuring a successful appraisal review defines its standards and what is expected from employees of their performance within their role it should be clearly communicated from managers to employee.

When preparing to organise and conduct a performance appraisal the employee and manager involved in the review must consider how the employee has performed since the last appraisal. The employee must demonstrate what they have achieved from the last appraisal from personal development and improvement plan devised by the manager and employee. How well has the employee reached and achieved the objectives set out for the individual at the review stage. It is important to analyse the issues (out of employee's control) that surrounds the individual if they have failed to meet the objectives or goals planned for them. It is central to the appraisal the feedback is given and the evidence that will support the feedback to help the employee improve performance during the time period between the next appraisal. It is essential the individual maps out what they intend to achieve through meeting agreed objectives for the next appraisal. Also aspects of development and training need any additional support that may be required through guidance from manager on the job. There should be a discussion on individual's career progression and development for the future. Discussing areas employee most interested and how they would like to develop in terms of achieving their desired role in the organisation. In the interim of the next appraisal objectives need to be clear between manager and employee in what is expected for the next appraisal.

Self - assessment is a process where individuals analyse their own performance as a basis for discussion and action. By involving individuals in assessing in their own performance it prepares the individual for the issues they feel may be raised. It also provides a positive attitude towards discussion with their manager and encourages individuals to be more open as they have a role in the process. For self assessment to work must be communicated the standard of what is required from their own performance. Individuals and manager/reviewer should have the same value of the process as it is possible for the reviewer to take advantage of the information given by the individual in their self - assessment. When pay is related to performance appraisal individuals may overestimate the value of their performance. Self assessment method may be useful for employees that or not used to or have not gone through the appraisal process very often which reduces the unilateral nature of performance appraisal that was traditional practiced.

There are guidelines to a good constructive appraisal meeting as the meeting is carried out by individual and manager. The individual/appraises should be encourage to do most to the talking. The manager/appraisers should be actively listening to what the individual is saying and asking relevant questions understanding points been made by the individual and aware of individual behaviour and body language to issues. There should be a discussion on what has been achieved in the period of time from the last performance appraisal. Appraisals should be based on analysed performance not their personality. It is important that the period of time from the last appraisal is reviewed and isolated issues or events do not over shadow the whole meeting. As individual performance issues should have been dealt with at the time they occurred. Also recognising individual's achievements and supporting individual strengths. When ending the appraisal meeting it is important for both parties to agree on action plan on the individual development and how they will be analyses at the next appraisal meeting. The manager/appraiser should have the basic required skills to conduct an effective appraisal. It is essential that the correct questions are asked and probing questions to either have a better understanding of the point make or the issue raised by the individual. Providing open questions will encourage the individual speak openly and more frankly to the manager regarding individual performance or issues.

Performance rating usually uses a rating of individual's performance especially when performance related pay is incorporated to appraisal. When rating individual performance there are three things to consider job description e.g. competences, individual performance e.g. attendance, strengthens and weaknesses and lastly rating errors. Rating errors can happen when using rating scales for example halo effect influencing rating on employee positive or negative factors or traits, first impressions again this should be based on performance not of the individual negative or positive impressions. There are also central tendency rating error where raters avoid high and low rating and give individuals a middle rating providing individuals with a competent rating overall. This leads to poor information of individuals training needs or progression. Alternative rating scale can have a positive impact at each level of the rating scale for individual performance for example if individuals receive rating scale of: highly effective, effective, developing, and improvable. There are arguments against rating method as you cannot sum up employees performance through a single rating. As there are many elements to a person performance and it may become demotivating. The process may be inconsistency between raters or unfair with discriminatory bias of the individual when managers are rating. Also rating may change the open and constructive discussion appraisal wants to achieved as manager are given a top - down judgement on individual performance. It is important to maintain and achieve consistency, acceptability, equity, fairness in their rating system. There are methods to achieve a consistent degree of accurate and fair rating. Graphic rating scale method, the simplest technique for appraisals ''a graphic rating scale list traits e.g. quality and reliability and a range of performance values from (unsatisfactory to outstanding) for each trait''. Forced distribution method, where managers place predetermined percentage or rates in performance categories and produces and win/lose situation. Ranking method, it is another form of forced distribution method where staff is ranked in order of merit. Performance ratings are distributed through a ranking system for example the top 5% get an A rating the next 15% a B rating etc. Behaviourally anchored rating scale (BARS) method is designed to reduce rating errors it is a combination of rating scale and critical incident techniques of employee performance evaluation. The benefit of critical incident acts as the anchor and the rating form contains six to eight specifically defined performance dimensions. This method of rating has become more reliable method of performance appraisal because it is job specific and measures behaviour. It is important for training to provide to all raters to maintain a consistency and build overall level of understanding about the rating levels and how ratings can objectively impact the level of performance appraisal.

The modern method that has formed is multi - source feedback system (360 degree feedback) the process provides feedback of individual performance from a full circle of people that the individual interacts with on a daily bases. Its rating system is based on peer rating, self rating and upward assessment this is look upon improving communication between workers. The ''benefits between multi - source vs. traditional feedback system are predicated on three important assumptions'' (Borman, 1997). Each of the rating sources can provide unique information about the target, multiple rating will provide incremental validity over individual sources and feedback from multiple sources will increase the target's self - awareness and lead to behavioural change'' (Fletcher & Baldry, 2000). Multi - source feedback brings every aspect of the individuals working environment into focus e.g. customers vendors if in contact with by the individual. As individuals are highly involvement it provides all - around perspective having impacting on behaviour, performance, increasing communication and working towards shared goals.

Providing feedback for employees through performance appraisal should be clearly based on facts and supportive evidence of the individual performance. It is important to deliver feedback in a manor where the individual understands and is aware of their actions and behaviour. Feedback can be given face to face to the individual with the support of a facilitator. It may also be given in report format with 360 degree feedback receiving information how they are viewed by their peers and co - workers will require a skilled person to communicate face to face or interpret the results from the report of the individual performance. It is important the facilitator or reviewer is trained to provide information and ensure they can point out weakness to be improved on and reflect on individual strengths and how to build on their abilities. Feedback encourages individuals to draw their own conclusion on pass behaviour or actions and how both the reviewer and individual can work towards improvements for the next appraisal meeting.

Organisation can benefit from a well planned and structured review system which will raise communication increase awareness with individual's roles and responsibilities. It will also improve employee's performance and employees working together to attain the same common goals of the organisation.