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Performance appraisal is an objective system that helps to judge the ability of an employee to perform his/her tasks. A good performance appraisal system therefore should focus on the individual and his/her development. As a result the organisation should also examine and prepare its human capital to achieve this result. There is a strong linkage between induction, training and appraisal. In a large number of firms worldwide, a new recruit is expected to discuss his schedule of work in achieving his induction objective. This schedule of work becomes a part of his job for the next few months. Effective organizations are not building merely on investment and returns but more on the quality of the workforce, its commitment to the organisational goals and investments made to attract train and retain superior human capital. An integrated Performance Management system is essential to get the best out of its people. Employee performance is linked to company performance. This helps in achieving the organisational goal and creates a performance culture in the company. Invention, creativity, diversity of perspectives is fostered. Employees act as one company one brand.
The term performance appraisal has been called by many names, including performance review, performance evaluation, personal rating etc.
Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview( annual or semi- annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. Managing employee performance is an integral part of the work that all managers and rating officials perform throughout the year. It is as important as managing financial resources and program outcomes because employee performance, or the lack thereof, has a profound effect on both the financial and program components of any organisation. A growing number of front running organizations like Ford, Microsoft and Sun Microsystems, have adopted a performance appraisal model in which best-to-worst ranking methods are used to identify poor performers. The identified poor performers are then given a time period during which they have to show an improvement in their performance.
Performance appraisal is currently used in the majority of large Western companies. Traditionally, appraisal schemes have concerned on past and current performance. The main motivation for introducing an appraisal system used to be to provide a basis for wage increases or new levels of merit pay. Today performance appraisal processes are often associated with the identification of training and long term potential. In most Western companies their immediate manager appraises employees.
The process can be as simple as filling out a narrative report once a year about an employee's quality and output of work. It may also involve sophisticated measurement techniques, such as simple rankings, behavioural anchored rating scales, checklists, critical incidents, forced choice methods, forced distribution etc.
The effects of rating scale formats on several indices of the usefulness of performanceÂ appraisalÂ for employee development were examined. The job performance of 96 police officers was to be rated using simple graphic scales or one of 2 behaviourally oriented rating formats: behaviourally anchored rating scales (BARS) and behaviour observation scales (BOS). As predicted, rates' satisfaction with performanceÂ appraisalÂ was highest and their perceptions of performance goals most favourable when using BOS. In addition, performance improvement goals for officers rated using BOS were judged by experts to be most observable and specific. Contrary to the authors' predictions, graphic rating scales were generally as good as BOS and as good as or better than BARS when evaluated in terms of rate attitude and goal characteristics. The results suggest thatÂ differentÂ behaviourally oriented rating formats can enhance or inhibit the developmental applications of performanceÂ appraisal.
Aharon Tziner,Â Christine Joanis,Â Kevin R Murphy.Â Group &HYPERLINK "http://proquest.umi.com/pqdweb?RQT=318&pmid=19427&TS=1271681608&clientId=47908&VInst=PROD&VName=PQD&VType=PQD"Â HYPERLINK "http://proquest.umi.com/pqdweb?RQT=318&pmid=19427&TS=1271681608&clientId=47908&VInst=PROD&VName=PQD&VType=PQD"OrganizationHYPERLINK "http://proquest.umi.com/pqdweb?RQT=318&pmid=19427&TS=1271681608&clientId=47908&VInst=PROD&VName=PQD&VType=PQD"Â HYPERLINK "http://proquest.umi.com/pqdweb?RQT=318&pmid=19427&TS=1271681608&clientId=47908&VInst=PROD&VName=PQD&VType=PQD"Management.Â Thousand Oaks:Â Jun 2000.Â Vol. 25, Iss. 2;Â pg. 175, 16 pgs
According to Ford's spokesman Nick Sharkey the revamping of the performance appraisal process and the elimination of its quotas were noted to employees at the company's Dearborn, Michigan, headquarters. Ford's rating systems have had about 18,000 mid-level managers who were annually graded with rating of A, B or C for their annual job performance. A year of C level meant no bonus and two years could lead to dismissal or demotion. Sharkey said the appraisal process would continue, based on mutually agreed objectives between managers and their supervisors. But he said the A, B, C grades were being scrapped in favour of ``top achiever, achiever
and improvement required'' and there would no longer be any guidelines
regarding the number of employees grouped in the lowest category.
In 2006, 25-bed Sunnyside Community Hospital was looking for ways to establish a strong safety culture throughout the organization. As part of that effort, it wanted to get its nursing staff more engaged in the patient experience and patient safety. Quality management coordinator Sheila Robinson looked to the physician peer review process as a model for providing constructive, but non-punitive, criticism and for helping caregivers sharpen skills and improve patient care. To be successful, peer reviews need to be done by an actual peer with similar expertise, Robinson says.
Jennifer Towne.Â AHA News.Â Chicago:Â Mar 8, 2010.Â Vol. 46, Iss. 5;Â pg. 4, 2 pgs
Many managers fall into the procrastination trap and avoid dealing with performance problems. Unfortunately, HR professionals who support them are often slow to diagnose the problem and provide timely assistance. A good management-training program can provide a solid framework; skills and confidence that help managers stop procrastinating. In addition to training, HR professionals can provide support by offering managers the following guidance: 1. Be aware of the paradox inherent in the fact your procrastination is not helpful to the employee. 2. Take detailed notes pertaining to the problem behaviours. 3. Get another person's perspective. 4. Acquire skills. 5. Have a solid plan for the conversation with the employee
Sharon Bar-David.Â Canadian HR Reporter.Â Toronto:Â Nov 2, 2009.Â Vol. 22, Iss. 19;Â pg. 23, 1 pgs
Virtually all the companies have some formal or informal means of appraising their employee's performance. Performance appraisal means evaluating an employee's current or past performance relative to his or her performance standards.
Performance appraisal is to have an assumption that the employee understands what his or her performance standards were, and that the supervisor also provides the employee with the feedback, development, and incentives required to help the person eliminate performance deficiencies or to continue to perform above par. The aim therefore is to improve performance. Not surprisingly, some managers and employees dislike performance appraisal. The major reasons for disliking performance appraisal could be due to lack of ongoing review, lack of employee involvement, lack of recognizing for good performance etc. Some have argued all performance appraisal system are so flawed that they are manipulative, abusive, autocratic and counterproductive. Though the purpose of performance management is to ensure and improve of employees' activities. Performance management includes practices through which the manager defines the employee's goals and work, develops the employee's capabilities, and evaluates and rewards the person's effort.
It is important for the employers to decide exactly what sort of performance to measure. The employer may opt for generic dimensions such as quality and quantity, or appraise performance on actual duties. Therefore the job of the employer is very critical, as they have to be aware not to include unclear standards, halo effect, central tendency, leniency or strictness problems, and bias. The traditional method of performance appraisal was for it to be usually conducted once every year or even after a period of 6-9 months. There are people who are punctual and honest towards their work and therefore a good performance appraisal is to be expected when conducted. While there are some people with laid-back attitude and probably aren't very punctual towards their work, as a result such people would have a bad performance appraisal. The problem with traditional method of performance appraisal is that as it is conducted once a year the most deserving candidate isn't rewarded for the hard work while the employee who was suppose to have a bad appraisal is being rewarded. This could therefore lead to dysfunctional behaviour among the employees themselves or even lead to office politics and even jealousy within the employees. Such controversy amongst the employees can affect the growth of an organisation or lead to no team- work that is required for a particular task that is to be carried out.
In order for an organisation to avoid such problems it is therefore important for them to conduct performance appraisal properly. It is also a good idea to talk to the employees personally or informally conducting performance appraisal in order to know what are the needs and wants of the employees. By doing this it becomes easier for the employers of supervisors to know what areas they need to work on in order to keep the employees happy.
Performance appraisals lead to dysfunctional or optimistic behaviours, which affect organizational performance. (Gary Dessler, 2006), Hence, dysfunctional behaviours lead an organization performance downstairs which arises for a lot of causes. A personnel manager when interviewed for his project that he has been working on states that majority of his staff dislikes the whole appraisal process. He also mentions that usually employees with a good performance appraisal thinks that the system is wonderful and one with a bad one thinks that is system is unfair.
Performance appraisal is very important for every organisation, it is through the appraisal the employers recognise the strength and the weakness of its employees. Employees are more motivated to learn and grow under the performance appraisal methodology.
Politics is assumed to be woven into every fabric of lives in Bangladesh. Politics is also indicated to occur in the managers' use of power in ascertaining and distributing rewards for the employees. However, politics in performance appraisal which is a critical process of reward determination in the organizations remains under-researched. Against this backdrop, the study investigates the relationship of employees' Perceptions of Performance Appraisal Politics (POPAP) with the employees' organizational outcomes such as job satisfaction, organizational commitment and turnover intention among the full time working (executive) MBA students in Bangladesh. The results of this study on the 67 executive MBA students selected from the four business schools in Bangladesh confirms that the employees' POPAP for punishment motive significantly reduces their job satisfaction and organizational commitment and encourages them to quit the organization. Contrarily, the employees' POPAP with a motivational motive, increases job satisfaction and organizational commitment and reduces the turnover intention of the employees. The study also opens up a broad avenue for research in the performance appraisal politics in Bangladesh.
South Asian Journal of Management. New Delhi: Jul-Sep 2009.
Example 6: Confronting the "Politics" in Performance Appraisal
In these days of escalating global competition and economic pressure, top management in virtually every company in the US is demanding increased effectiveness from all areas of their operations. In theory, managers are called up to be objective, rational, dispassionate, and unbiased in evaluating the performance of their employees. They are invariably instructed by their organizations to conduct an accurate appraisal of the subordinate's performance. Most organizations operate under the belief that performance appraisals serve a valuable function in managing people. Here are some suggestions for establishing an organizational culture that sets a tone for the occurrence of less political, but nonetheless effective, appraisals: 1. Create a climate for effective performance appraisal at the top. 2. Weed out policies and procedures that create political stumbling blocks for managers. 3. Turn the ratings taboo upside down. 4. Teach realistic appraisal practices in the context of effective management/leadership training. Be forthright about the temptations and potentials for potentials for politics in appraisal.
Business Forum. Los Angeles: 2001.
Example 7 : Playing to win in the Office
According to Andrew DuBrin, an industrial psychologist, office politics involves the successful balancing of the sometimes necessary political game playing against a genuinely high level of job performance and competence. DuBrin states that there are 4 levels of office politicians: 1. the Innocent Lamb, a naive individual unaware of political games being played in the office, 2. the Straight Arrow, who relies on a high level of competence, rather than office politics, to gain a promotion, 3. the Survivalist, who will say exactly what the boss wants to hear in order to get ahead, and 4. the Machiavelli, who will go to any lengths to be promoted. In management, the middle manager must be a politician, cultivating those both above and below the middle management position. In DuBrin's opinion, the ideal organization would be one with no office politics, where everyone is a Straight Arrow and gets ahead on diligence, talent, and competence.
Prevatt, Barbara. Business Credit. New York: Feb 1988.
Organization Behavior Simulation
Understanding Issues in Organizational Behavior
The understanding issues in organizational behavior simulation involved the human resource manager finding resolutions to the recent escalated issues such as stress and motivation in the maintenance department and other areas of Carter-Porter Regional Airport. Another issue in the simulation was intolerance and misunderstanding toward other cultures in the organization. All of the issues in the simulation would have a major impact on the organizations performance and the organizational culture if they were not attended to in the right manor.
The first section in the simulation dealt with stress. Stress is "a state of tension experienced by individuals facing extraordinary demands, constraints, or opportunities" (George & Jones, 2005). The stress illustrated in the simulation was dysfunctional stress. Maintenance personnel need to perform additional tasks due to the increased workload from the rise in air traffic. The stress can be described as in the form of job burnout. Job burnout is "a loss of interest in and satisfaction with a job due to stressful working conditions" (George & Jones, 2005). Job burnout can lead an employee to feel emotionally and physically exhausted, frayed tempers, increased conflicts, and absenteeism. If stress on employees gets out of control it will directly impact the productivity of the employees which in turn will have an effect on the day to day operations of the company and its bottom line. High stress levels hinder the growth of the organization and it is imperative to uncover the signs of stress early and take immediate action to address it.
The goal in the simulation is to implement short term and long term measures to reduce dysfunctional stress levels without affecting productivity of the employees. An added pressure in deciding what measures to take is to stay with in an allotted budget. Monetary incentive such as bonuses and pay increases can help to make the employees
Once a year in every org
Hint for performance appraisal
Hw will it benefit employee n employer motivation
Pro's n con's only one a year not informal or even day to day basis