The performance management system should provide benefits to both the employee and to the organization. For the individual, the appraisal should provide a management information system for making management decision as well as a toll for improving performance. Today’s organization can no longer afford to live with an ineffective appraisal system.
Practically all managers and many employees dislike the experience of performance appraisals. However, the pulses far outnumber the minuses with many good reasons for formally appraising performance. The appraisal is a more factual presentation to demonstrate an employee is failing within the functioning of a group or document. On the positive side, appraisals will also provide valuable insights as to the future direction the department or work group will take.
Performance may be defined as the accomplishment of an employee or manager’s assigned duties and the outcomes produced on a specific job function or activity during a specified time period. Performance appraisal, review or evaluation refers to s systematic description and review of an individual’s job performance. Performance management refers to the total system of gathering
information, the review and feedback to the individual, and storing information to improve organization effectiveness. The primary goal of performance management appraisals is to improve organization performance. The appraisal are used for a variety of purposes, including the following:
1. compensation one of the most common uses of performance management concerns compensation determining pay increases, bonuses and other pay related issues
2. performance improvement an example of this is where companies use appraisal systems which link performance improvement with pay. An effective appraisal system performance is neccessary for these incentive systems to work.
3. Interla appraisal Perfomance appraisal information is also used in performance decisions, to determine promotions, transfers, or in the case of downsizing, do identify possible layoffs. Most organizations rely on performance appraisal information in deciding
which employees to promote to fill openings and which employees to retain in a downsizing situation.
One problem with relying too heavily on performance appraisal information in making decisions about promotions is the the employee’s performance concerns only his or her current job if the promotion involves different skills from the employee’s current job, it is often impossible to predict how the individual will perform at the new level.
4. Evaluation performance appraisal information may also be used to evaluate the effectiveness of the recruitment process, to validate selection criteria or other predictors of job perfomance. In these cases, the HR manger on-the- job perfomance appraisal so
that the test scores or selection ratings can be correlated to job performance
5. Internet feedback This is a feedback system where employees send feedback to assist managers in assessing their leadership skills. The system is user friendly and is seen by employees as worthwhile. The system feedback not only assesses manager’s team
leadership skills, but also helps them develop those skills. The advantages of the system include the reduction of paperwork, reducing employee’s times, and maintaining employees anonymity while providing prompt feedback. The result is informative
feedback that promotes leadership development.
6. Development tool Performance apparaisal may also be used as a development tool for the individual employee, providing an opportunity for feedback, recognition, and reinforcement.
This performance review also provides employees with career goals and direction for future performance The appraisal allows the organization to select those best qualified for promotion suggest areas where training may be effective, and help improve individual performance, resulting in improved bottom-line productivity. From the individual’s viewpoint, performance appraisals should
provide recogntion of one’s contributions; a feeling of support from one’s immediate supervisor and the feeling of security from knowing one is performing satisfactory.
When giving feedback to an employee in an appraisal, the interview should have the necessary information to make the evaluation of job perfomance and present a summation of that information. At this point the feedback session should turn to a discussion of developing strengths, thus shifting into a counsellling session. It is suggested that supervisors keep a file on each worker, noting significance accomplishments or setbacks and appraisals as an ongoing process.