Performance Appraisal Leading To Dysfunctional Behaviour Commerce Essay

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Performance appraisals are used to assess an employee's performance and to communicate that performance to the employee. Performance appraisal is variously called employee rating, employee evalution, performance review, or results appraisal. Performance appraisals are widely used for administering wages and salaries, giving performance feedback, and identifying individual employee strengths and weakness.

In the process of identifying employee strengths, weakness, potentials, and training needs through Performance appraisals feedback, supervisors can inform employees about their progress, discuss areas where additional training may be beneficial, and outline future development plans. The manager's role in such a situation parallels that of a coach, discussing good performance, explaining what improvement is necessary, and showing employees how to improve. It is clear employees do not always know where and how to improve, and manager should not expect improvement if they are unwilling to provide developmental feedback (Human Resource Management‎ - Page 337

Robert L. Mathis, John H. Jackson - Business HYPERLINK "http://books.google.co.uk/books?q=+subject:"Business+&+Economics"&lr="&HYPERLINK "http://books.google.co.uk/books?q=+subject:"Business+&+Economics"&lr=" Economics - 2007 - 592 pages )

Performance appraisal is used to assess the work of the employees. Appraisals are done for various reasons; some raise performance of employees whereas sometimes doing a performance appraisal can demotivate them causing more damage than good. In spite of this, performance appraisals are essential in every business. According to Flippo, "no firm has a choice as to whether or not it should appraise its employees and their performance. It is compulsory for any company/firm to evaluate the performance of its people". So, Performance appraisal is an essential function of management by which the actaual contribubution of a company's employee is measured and evaluated. 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The supervisor or manager will observe how the employee performs over a period and then decide if he needs any improvements and/or help and give feedback for the overall work for better results. This improves communication thus improving the relationship between the employer and the staff. However, this same reason can cause conflict if the employee and employer do not agree with each other. Appraisals determine whether the employee is up for a pay raises or promotions. Nevertheless, it is also used for demotions if required.

Advantages of appraisals include employees being motivated as positive reaction from the company encourages the employee to work better and improve what needs to be done*. Better relationship between employer and employee, as when they communicate between each other it helps them understand each other better and therefore reach certain goals set for the employee. * Training is made easier to new staff by assessing their abilities. Weaknesses are targeted to make them into the employees strength. It is used to determine which employee to give bonuses to which also helps in motivation. Other advantages are assisting in decision of career plans. It also helps improve the company's methods of performance appraisal by comparing old methods to their new methods and finding problems with the old ones and searching for solutions and implementing them in the most recent performance appraisal.

When the performance appraisal is not carried out properly disadvantages is arise. Poor communication between the employer and the employee leads to disagreement and therefore resentment to employer/employee. Employees might expect a pay raise and when the employers do not do accordingly it leads to anger aimed at the employer however it is not the employers fault if the employer has not mentioned about any raise prospect but if otherwise then it is the employers fault. Performance appraisal's are time consuming, the employees are disappointed if the outcome does not go according to their liking, this can cause discouragement.

A example of the methods of how to do appraisals are:

It should be made clear to the employee what is expected of them and how it will be used for their appraisal later. The employee should be updated regularly

Performance appraisal should be carried out in a systemised and a correct approach. However as sometimes it is not always accurate it causes dysfunctional behaviour between employees .

Performance appraisal is a method of evaluating the behaviour of employees in the workplace. It includes both quantitative and qualitative aspects of job performance. Appraising the performance of an individual, group and organisation is a common practice in all societies, the only difference is that it may be structured manner or somewhere it is an informal and an integral part of life.

By appraising performance we evaluate not only the performance of a person but at the same time his poteintial for development. Performance is always measured in terms of results not efforts. For example, if a sales person is taking lots of efforts to sell his products but is not able to complete the gien sales-target, the efforts expanded are high but his performance result is below expectation.

Performance appraisals are more focused on behaviours as a part of assessment because behaviours do affect jod results. The performance is measured against such factors as job knowledge , quality and the quantity of output, initiative , leadership abilities, supervision, dependability, co-operation, judgement, versatility and health. Assessment should not only be confined to the past but also extend to potential performance.

According to Flippo, "no firm has a choice as to whether or not it should appraise its employees and their performance. It is compulsory for any company/firm to evaluate the performance of its people". So, Performance appraisal is an essential function of management by which the actaual contribubution of a company's employee is measured and evaluated.

Ref: human resource management : managing people at work...mrs.y.l.giri

Subject I

The different methods of employee performance appraisals are an important tool used in Human Resource Management. They all have advantages and disadvantages; however, they are an excellent source of information to make decisions on future selection of employees[1]. It helps management decide what training is needed for existing employees, and can be used to let the employee know how they performed during a certain rated period. This is a very powerful tool that can be used to influence behavior, and imbed a companies' culture in to an employees' personality.

One of the appraisal methods is through a written essay. The assessor makes an assessment of the employee during a certain period on past performance while depicting future potential. The advantage of this method is that there is no format to follow and it is easy to use. In contrast, this method is difficult to compare and measure evaluation of the past.

Another performance appraisal method is the graphic rating scale. A variety of subjects can be selected to fit the purpose of the assessment. These subjects can be rated using a number system, i.e. (1 = unsatisfactory, 5 = above average). This method can be enhanced with the written essay method.

The critical incident appraisal method is used when critical behavior - positive or negative - must be discussed. This method is used to modify behavior observed during a particular incident. It must be noted the personality traits are not to be discussed. This method is only effective if conducted immediately after the behavior.

To encourage motivation and initiative the management by objectives method is implemented. The idea is to have the employees establish their own goals. This eliminates the employees' perception that the goals are extremely difficult or outright impossible to attain.

In contrast to "management by objectives method", the work standard approach has management establishing the goals and provides to the employees a clear guidance of what is expected from them.

In conclusion, in order for an organization to have an effective performance appraisal system, managers should be selective on the different methods of appraisals in accordance with the desired outcome[2].

Word count: 401

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[1] Einstein, W. O., & LeMere-Labonte, J. 1989. Performance appraisal: dilemma or desire? Sam Advanced Management Journal, 54 (2): 26-30.

[2] Craig, S. E., Beatty, R. W., & Baird, L. S. 1986. Creating a performance management system. Training and Development Journal, April: 38-42; May: 74-79.

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