Performance Appraisal Employees

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Study Skills in English


Thesis: Performance appraisal is very useful for an organization to manage the employees in order to know the working performance of the employees.

I. The Purposes of Performance Appraisal

  • The assessment of past effectiveness and setting of new Performance targets
  • The assessment of present salary levels and setting of new levels or relation of performance to pay
  • The assessment of training and development needs, and identification of strategies for meeting them
  • The assessment of potential for promotion and development with succession planning
  • The assessment of individual progress and assistance with career planning decisions
  • The enhancement of motivation and communication

II. Popular Methods that being used as Performance Appraisal Process

  • Management by Objectives (MBO)
  • 360- Degree Feedback

III. Advantages and Disadvantages of Performance Appraisal

  • Advantages of Performance Appraisal
  • The Disadvantages of Performance Appraisal

IV. Performance Appraisal Method

  • Written Essays
  • Critical Incidents
  • Graphic Rating Scales
  • Behaviorally Anchored Rating Scales (BARS)
  • Multiperson Comparisons

V. Conclusion

Performance Appraisal is simply a management technique operating under a mask to control employees by reinforcing behavioral norms it consider desirable. Performance appraisal is the process of analyzing and recording performance which the purpose to make judgments about staff that lead to decisions. Performance appraisals are essential for the effective management and evaluation of staff. Performance appraisals help to build up individuals, improve organizational performance, and build strategic business planning, lead to a better performance and better management corporation.

The system with highly interactive processes will involve personnel at all levels in differing degrees in determining job expectations, selecting relevant appraisal criteria, writing job descriptions, developing assessment tools and procedures, and reporting results, and collecting interpreting can also be viewed by performance appraisal. (Winston et al.1997). The performance appraisal process is streamlined and impact. It helps to easier managers' job to deliver constructive feedback on their progress and agree upon goals and skills with the employee. The process benefits both the individual and the organization by clearly outline goals.

Formal performance appraisals are generally conducted annually for all staff in the organization. Each staff member is appraised by their line manager. Directors are appraised by the CEO, who is appraised by the chairman or company owners, depending on the size and structure of the organization. Annual performance appraisals will help to manage management and monitoring of standards, agreeing expectations and set the goals, and delegation of responsibilities and tasks. It also set the need of training for individual and helps organization to analyze and plan the training needs. Performance appraisal also used on measurement of salary and pay of employees to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes, a cut in salary or pay would follow if an employee's performance was found does not reach the requirement, but if their performance was better, and pay rise was in order.

Performance appraisal divided into two categories that are pros and cros. Pros will let people know how they are doing, hold people accountable, help in salary adjustment, and provide information for promotion and other decisions. Pros will also assist all organization function and activity to improve productivity. The cons of performance appraisal are appraiser and appraise commonly dislike appraisals and try to avoid them. To this kind of people the appraisal is discouraging and time-consuming. They assume the process as difficult task and emotionally challenging. The annual appraisal will be the only time since last year that the two people have sat down together for a meaningful one-to-one discussion. No wonder for them the appraisal is stressful - which then defeats the whole purpose. There lies the main problem and the remedy.

The human inclination to judge can create serious ethical, motivational, and legal problems in the workplace. On the other hand, without a structured appraisal system will cause a little chance of ensuring that the judgments made will be fair, lawful, defensible and accurate. For new motivational researchers were aware that same amount of wages will be pay off to the different level kind of people even though they have the equal work abilities and also have different levels of motivation and performance. These observations were established in experimental studies. Pay rates plays and important role they not only have impact on employee performance at the same time morale and self=esteem also could have a major influence due to the pay. (Introduction Performance Appraisal, 2006).

Now a days most of organization use performance appraisal system because it very useful to organization. Staff appraisal schemes are all concerned with taking stock of the present situation and reviewing past performance, and planning for the future. According to this description, there are a number of purposes and outcomes of the appraisal process (ABE Study Manual, 1994, pg 161-164).

“The assessment of performance is very important task in all organization, from the CEO to the newest office junior. Granted, the criteria for judging will be different at those extremes, but the principle is same (ABE Study Manual, 1994, pg 161-164).”

Appraisal can only address the achievement of standards or objectives if they have been clearly defined and understood by all concerned. It must be clear what level of performance are acceptable, that the standards are valid and attainable, and that allowance will be made for factors outside the control of the individual (ABE Study Manual, 1994, pg 161-164).

“In the context of appraisal it must be seen as a two-way exercise which locates the individual's own objectives in the context of those of the organization and the organization's support.” This would include the establishment of individual's major priorities over the next period and the extent of managerial support needed for success. Next will be agreement about overall objectives of the department/section and of the individual within that context (ABE Study Manual, 1994, pg 161-164).

The way of the company to determine pay and bonuses of its staff is measure the staff performance. Many organization use staff appraisal for this purpose. For example when an employee has a good working performance, very responsibility and very effective in his or her works, he will get extra bonuses or awards from the companies. On the other hand if an employee is very lazy, every time late for work, not responsibility and not effective in his or her work. For this kind of employee, the companies may fire him or cut down his or her salary and no bonus for the end of the year (ABE Study Manual, 1994, pg 161-164).

“All plans for training and development must include the needs of the section or department as well as individual, as seen both at present and well into the future (ABE Study Manual, 1994, pg 161-164).” The companies can correct the employee's weakness with set a new plans of training for the employees in order to improve their working skills and knowledge.

Appraisal can help to identify those employees who show great potential, talent spotting, and prepare them for future higher roles in the organization. “Good planning should be an on-going process which covers a sound knowledge of the employee group, their collective and individual abilities and the future needs of the unit (ABE Study Manual, 1994, pg 161-164).” So for the employees that perform well in their works, the companies will try to promote them to the higher position. For example if the employee position is an accountant, so the manager will promote to senior accountant or supervisor.

Staff appraisal schemes focus attention on the individual's performance in the job. As well as discussing improving performance in the job in the future, the process provides a natural discussion for considering where he or she may be going in the future. It will be the organization's perception and in view of the employee's own aim and objective. The discussion can inform both planned adjustments in job role and thus performance targets, training and developments plans (ABE Study Manual, 1994, pg 161-164).

“For the enhancement of motivation and communication, this can generate a large amount of goodwill and respect for the organization, and provide important gains in the development of internal communication and individual motivation.” The appraisal process should include the good communication between colleagues, upwards, downwards and sideways (ABE Study Manual, 1994, pg 161-164). If a manager has a communication with the employees, it will help the employee to performs better in their work. This is because of when there is a good communication between the manager and the employers, the employees will know what the wants from the manager is and the employees can success the wants of the manager. Motivation can motivate the employees to work harder and interested with their works. .

From the individual employee's point of view four elements are worthy of note. The first element will be opportunities to discuss career development are rare, the chance offered in appraisal can stimulate personal growth and set new targets for the future. Than follow by the act of completing a careful and thorough appraisal is a source of motivation, with a consequent enhanced enthusiasm and commitment to the job and the organization. Next will be a creative appraisal will allow the appraiser to make constructive comments about the level and quality of supervision received. At last, most people are pleased to have their work performance evaluated in order to have strengths emphasized and developed, to have the opportunity to discuss improving areas in which they are less effective, and to recognize the relevance of the part they play in the overall patterns of the enterprise (ABE Study Manual, 1994, pg 161-164).

“Management by objectives (MBO) appeal undoubtedly lies in its emphasis on converting overall organizational objectives into specific objectives for organizational units and individual members.” MBO consists of four elements that are goal specificity, participative decision making, an explicit time period and performance feedback (Robbins, 2006, pg.246). MBO aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. MBO substitutes for good intentions a process that requires rather precise written description of objectives for the period ahead and timelines for their monitoring and achievement. The process requires that the manager and the employee agree to what the employee needs to be attempting to achieve in the period ahead, and the employee accepts and agree with the objectives, otherwise the commitment will be lacking (Vadim Kotelnikov, 2007).

For example, whatever else a manager and employee may discuss and agree in their regular discussions, if that they feel that it will be sensible to introduce a key performance indicator to show the development of sales revenue in a part of the firm. Then the manager and the employee need to discuss what is being planned, and what the indicator might or might not be what the time-schedule is. The manager and the employee should work together to ensure that the objective is being attended to and will be delivered on time (Vadim Kotelnikov, 2007).

An organization have limited resources and so is depend on the managers to consider the level of resource and to consider whether the objectives that are jointly agreed within the firm are the right ones and represent the best allocation of effort. Reliable Management information systems are also needed to establish relevant objectives and monitor their "reach ratio" in an objective way (Vadim Kotelnikov, 2007).

MBO is often achieved using set targets. MBO introduced the SMART criteria: Objectives for MBO must be SMART (Specific, Measurable, Achievable, Realistic, and Time-Specific). However, it has been reported in recent years that this style of management receives criticism in that it triggers employees' unethical behavior of distorting the system or financial figures to achieve the targets set by their short-term, narrow bottom-line and completely self-centered thinking (Vadim Kotelnikov, 2007).

In human resources, 360-degree feedback, also known as 'multi-rater feedback', 'multisource feedback', or 'multisource assessment', is employee development feedback that comes from all around the employee, supervisors, and co-workers. “Some of the companies are using or were planning to use 360-degree feedback such as Alcoa, DuPont, Levi Strauss, UPS, and W.L. Gore & Associates have used this approach (Robbins, S.P, 2007, page 368).” It can be effective for career coaching and helping a manager recognize the strengths and weaknesses (Robbins, S.P, 2007, page 368).

360 degree appraisals are a powerful developmental method and quite different to traditional manager-subordinate appraisals that which fulfill different purposes. 360 degree appraisals are considered helpful and relevant because it involves the appraisal receiving feedback from people named or anonymous. The appraisal should assess the employees by using the same feedback instrument or form. The feedback is also provided on a form showing job skills, ability, attitude, behavioral criteria and some sort value judgment system (Chapman, 1995).

The advantages of performance appraisal will be in the rush and bustle of daily working life, it offers a rare chance for a supervisor and subordinate to have "time out" for a face to face discussion of important work issues. Normally when the company receives a big project and before they start the project, the manager and the employees will have a meeting to discuss the process of the projects. It will help them to work better for the project. For many employees, an "official" appraisal interview may be the only time they get to have exclusive, uninterrupted access to their supervisor. The value of this intense and purposeful interaction between a supervisors and subordinate should be appreciated (Performance Appraisal Benefits of Appraisal, 2006).

Performance appraisal can lead to a major effect on levels of employee motivation and satisfaction toward good and also bad performance. Performance appraisal provides employees with recognition for their work efforts. The power of social recognition as an incentive has been long noted. In fact, there is evidence that human beings will even prefer negative recognition in preference to no recognition at all (Performance Appraisal Benefits of Appraisal, 2006).

Performance appraisal offers an excellent opportunity to bring up the best that will ever occur such as for a supervisor and subordinate to recognize and agree upon individual training and development needs. During the discussion of an employee's work performance, the presence or absence of work skills can become very obvious, even though to those who have the mind set of rejecting the idea of training for them! Performance appraisal can make the need for training more pressing and relevant by linking it clearly to performance outcomes and future career aspirations (Performance Appraisal Benefits of Appraisal, 2006).

Appraisal data can be used to monitor the success of the organization's recruitment and induction practices. Appraisal data can also be used to look after the flow and the effectiveness improvement in recruitment strategies. By following the yearly data related to new recruitment (and given sufficient numbers on which to base the analysis) it is possible to assess whether the general quality of the workforce is improving, staying steady, or declining (Performance Appraisal Benefits of Appraisal, 2006).

The disadvantages of performance appraisal will be employees tend to keep receiving the same results, year in and year out, their appraisal results will tend to become self-fulfilling: for example those who done pretty well will tend to improve to a higher skill and level of performance, on the other hand, for those that did poorly will be demoralize. This is because of no matter how hard an employee struggle, their past appraisal records will prejudice their future attempts to improve. So that the employee that have poor performance will not be given a fair chance to improve. Subordinates tend to be divided into two groups that are in-groupers and out-groupers were found out by a study of supervisors in nearly 40 different organizations. In groupers are subordinates who seem to be favored by their supervisors because they enjoy "a high degree of trust, interaction, support and rewards." On the other hand, out groupers don't do as well because they appear to be permanently out of favor and are likely to bear the brunt of supervisory distrust and criticism. The effect is therefore similar to the horns and halo effect; supervisors tend to judge employees as either good or bad, and then seek evidence that supports that opinion.

It also found that when an in grouper did poorly on a task, supervisors tended to fail to see the failure or characteristic to causes such as bad luck or bad timing. On the other hand, the success will attribute to effort and ability when they did well. But for an out grouper, it was seldom attributed to their effort or ability when they performed well. And when an out grouper performed poorly, there was little cause as laziness or incompetence. It will be unclear for the supervisors to make the distinction between in groupers and out groupers. This will be clearly not objective, equitable or reliable for all the criteria. This situation will lead to a change of the appraisal process. It must also be a source of frustration for those employees who are discriminated against (Performance Appraisal Bias Effects, 2006).

“The written essay requires no complex forms or extensive training to complete but the results often reflect the ability of the writer. A “good” or “bad” appraisal may be determined as much by the evaluator's writing skill as by the employee's actual level of performance (Robbins, S. P. 1988, pg. 550).” Next, the critical incidents are important to focus the evaluator's attention on those behavior and performance of employee to differentiate whether effective from ineffective job performance. The record of appraisal can show the anecdotes that describe what the employee did that was especially effective or ineffective. Only specific behaviors are cited, not vaguely defined personality traits (Robbins, S. P. 1988, pg. 551).

After that will be graphic rating scales lists a set of performance factors such as quantity and quality of work, job knowledge, cooperation, loyalty, attendance, honesty and initiative. The evaluator will go down and analyze the list and rates on incremental scales (Robbins, S. P. 1988, pg. 551). Behaviorally Anchored Rating Scales (BARS) has received a great deal of attention and most in use during recent years. The scales which combine major elements from the critical incident and graphic rating scale make the appraiser rates easier upon an employee according to items along a continuum. However, the points are only examples of actual behavior on a given job and its reality is rather than employees' general descriptions or traits (Robbins, S. P. 1988, pg. 551). At last Multiperson comparisons compare one individual's performance to those of one or more others. It is a relative, not an absolute, measuring device. The three most popular uses of this method are group order thinking, individual ranking, and paired comparisons (Robbins, S. P. 1988, pg. 551).

Performance appraisal is common use by most of the organization because performance appraisal can viewed as the process of assessing and recording staff performance for the purpose of making judgments about staff that lead to decisions. So that the organization can know what is the performance of the staff. Performance appraisal also can motivate the employee of their work effort. Performance appraisal can make the need for training more pressing and relevant by linking it clearly to performance outcomes and future career aspirations. Performance appraisal is very useful and easier for most of the organization to view the staff performance and the process of assessing.


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