Important components of the performance appraisal process


This chapter will offer with quite elements of the performance appraisal process plus some of the best practises that are consistent with successful use of performance appraisal.

The information to be provided will also summarize an assessment of books from scholars on the performance appraisal process talking about the types and approaches to performance appraisal

Also this review will study the key issues bordering performance appraisals and can also look at the attitudes of employees with their jobs as a result of the appraisal feedbacks they get in their organisation.


Performance appraisal is an essential process in human being source of information management. It involves organizations score their employees' abilities to execute and also evaluating their price for organizational rewards. Different researchers have mentioned at different things of time that many employees aren't satisfied with the performance appraisal systems that works in their in their organisations.

Armstrong (1994) identifies performance Appraisals as "an activity made with the purpose of improving organisational specific performance". Performance appraisal is seen an system of performance management. Performance management serves as a a joint process that involves both the supervisor and the employee, who identify common goals, which correlate to the bigger goals of the organization (Rogers (1995). Armstrong and Baron also defined performance management as a process that contributes to the effective management of individuals' and groups in order to accomplish great levels of organisational performance.

Performance appraisal which could also be known as performance review, It's something of management that documents the accomplishments of your each employee with respect to targets place at a youthful time. It is documented by the end of an formal evaluation. Through the evaluation period, the advantages and the weaknesses of the individual are reviewed predicated on the results from appraisal (Aguinis and Pierce, 2008). It's important to comprehend that performance appraisal is one of the subsets of performance management in virtually any organisation. Futhermore, performance appraisals provide a formal overview of performance where both staff and the supervisor can provide feedback as a result of the analysis. (Pulakos, 2007). Also performance appraisal is not the only real responsibilty of the management but it ought to be employed by employees as an instrument to discover self applied development needs( Kirkpatrick, 2006).

Performance management is about harnessing the talents and creativity of each employee. In order to get the most out of performance management, organizations need to set up place systems and methods which translate the goals of strategic management into individual performance terms. (Storey and Sisson, 1993). Also Performance management can be seen as a organized approach to management which uses goals, measurement, feedback and acceptance as a means of motivating visitors to achieve their goals(Henderson, 2008) Futhermore, the books demonstrates each organization has a distinctive performance management system that signifies a core competencies required for the survival and sustainability for that one organization and does not put focus on one single aspect.


Traditional Performance appraisal: In this kind of appraisal, the manager sits down with an employee and discusses the performance of the past year. The discourse is dependant on the manager's observation of the employee's ability and performance in relation to what's in his job description. Furthermore, most traditional performance appraisal methods involve quantitative tools which are being used to rate employees and are oriented to numerical or scalar scores. However, most traditional appraisal forms employ many ranking categories and this could be unhealthy but as the complexity of careers rises, the orientation to numbers

becomes more difficult because minimizing the complexities of each individual's contributions and competency to a letter or number is good for a variety of reasons inadequate.


The do it yourself appraisal method is a method used in the appraisal process to encourage employees to use liability for his or her own performance. The staff is asked to evaluate his own successes or failures during the past year. This method stimulates self management and development. However, this method does not replacement for an diagnosis of the employees performance by the administrator, but it can be used in combination with or as a part of the appraisal process.

The function of home appraisals may be afflicted by the goal of ranking, but so many conflicting results have been reported. Recent field studies have concluded that when used for evaluative purposes, do it yourself appraisals were inclined to lenience bias, but this lowered when appraisals were expected to be accredited (Werbel & Bedeian, 1988).

Furthermore, Margerison (1976) suggest that self examination or appraisal is the only path to give an entire picture of the performance of the staff also to avoid a 'criticise-defend situation'. However it requires the employee to have a detailed and prepared understanding of both current and future needs of the work role and the organisational needs.


In an employee-initiated review system, the employees are educated they can ask for a review from their administrator. However, these reviews aren't meant to replace a regular semiannual review, but to promote an attitude of self-management among employees and makes critiques more genuine. Organizations that make use of this type of review process conserve that it stimulates regular communication between personnel and managers. However, critics note that it would depend on the employees' initiative, which makes it a significantly less than ideal alternative for a few workers with tranquil, retiring personalities or assurance issues.


This type of performance appraisal process suggest that feedback with an employee's performance being provided by the manager, differing people or departments who interact with an employee (peer analysis), exterior customers, and the staff herself. It may also be regarded as a method whereby an individual is assessed on their performance by people who are acquainted with job specifications. This method of feedback includes employee-generated opinions on management performance (which is also called upward appraisals).

The effort behind 360 level feedback is the fact employees reap the benefits of feedback gathered from an array of sources such as peers, subordinates superiors etc. the procedure follows an operation where competencies have been set up and discussed. Employees are then wanted to choose six significant people who cover a variety of respondents and those giving feedback use a score scale. An example is mangers being evaluated by their employees on people issues like communication while their peers are evaluated on issues such as teamwork ( Roberts, 2001).

Furthermore, 360 level feedback, also called multi-level, multi-source reviews, is an extremely powerful and very sensitive process. It could enhance the individual's knowledge of how their performance is viewed by their contemporaries and exactly how it relates with their own view of these performance.

Management-by-Objectives (MBO)

This can be an approach to management where management and employees jointly place goals and aims to achieve within a give time frame and by the end of this period, both come together to judge the performance by the amount to that your objectives have been achieved. Examples include, Sales or earnings target etc. Regarding to Odiorne (1979), MBO is premised on the advice that building goals between managers and employees will achieve better results than arbitrary methods or just-in-time solutions. This style of performance management is known as a highly participatory management system, that allows employees to be productive contributors in creating directives for his or her performance and appraising their achievements. MBO does not automatically have to work on its; it can work in combination with other total management initiatives( Hunter and Rodgers, 1991). Manangment by aims which was first outlined by Peter Drucker in his publication( The Practice of Management) in 1954. It emphasises the concept of goal setting and feedback( Drucker, 1973).

2. 2. 1 Methods of Performance Appraisal

Most organisations have different methods to performance appraisal. Winston and Creamer(1997) known that performance appraisal in a great deal of organization can be an ongoing event which is performed periodically. It is a task that generally places emphasises on personnel improvement and not salary adjustment which might be a kind of incentive or disciplinary action.

A) Behavior-Based Techniques -: This is the sort of performance appraisal that uses specific performance factors to judge employees. This process is further divided into the following

i)Conventional Rating Level: This rating scale runs on the specific phrase or phrase to describe the amount to which certain conducts are displayed. The characteristics of such behaviors are shown in the work description. In a situation where there are no habit descriptions, the supervisors use other employees to ascertain behaviors that would be useful to determine appraisal setting up.

ii) Behaviourally Anchored Level :This approach occurs as a result of collaboration between your supervisors and other employees where broad categories of practice are identified. The measure of employee patterns is rated on a scale with regards to specific actions.

iii) The weighted checklist: That is yet another way of getting close behavior-based appraisal. In this method, employees are judged on the level indicating the degree to that your statement accurately represents their performance regarding to a list of performance related assertions that are weighted.

B) Results-Focused Approaches -: That is the kind of approach that targets the result to be derived from the appraisal. Creamer and Janosik (in press) noted both advantages and disadvantages to results-based performance appraisal methods. The advantage been, they produce short and long-term results in reaching the performance and organizational objectives, and tend to be perceived as fair, and also have a tendency to generate high degrees of commitment among the employees to the organization, and they encourage a higher level of involvement and are thus defensible. Along with the disadvantage been that, they could be overly results oriented and they're mostly inflexible. Before an organization can adopt this approach, the management must be of the view that the advantages outweigh cons, for the approach to be integrated.

C) Accountabilities and Steps approaches: This process consists of the supervisor and the other employees agreeing on accountability, fairness and performance factors and including such factors in the job information. Performance is then estimate for every factor to enable quantifiable measures for each and every factor. An Accountabilities and Options format can be created, with performance factor groupings.

Although the research study of the research will not use a particular one out of the group of performance appraisal type since their performance appraisal is completed quarterly but from our research, we found out that the company have a tendency to use more of the effect Based Approach. It is because the judge and employees based on the result he/she achieved from a task.


Motivation is a very important facet of an company as it plays a part in how well it carries out. This ultimately has an effect on the organisations corporate objectives. This includes attainment of higher market talk about and income maximisation because of this of an

individual's performance. Procedures that are being used to motivate employees have an effect on their willingness to remain with the company. Appraisals are common in many companies and are seen as an essential element in motivating employees; so that it increases the value of undertaking this review.

Motivation reaches the centre of biological, cognitive and public regulation, and its importance is based on the consequences of the activities its promotes (Ryan and Deci, 2000). Desire is of principal matter to anyone in a coaching or managerial position because it is why is other people react. There are many different reasons that folks are motivated to learn or perform requested responsibilities. These can be exterior rewards such as money or materials rewards, or interior rewards such as internal satisfaction and gratification. They can also be to avoid negative implications: people may follow orders that they do definitely not agree with out of fear of retribution such to be excluded from certain opportunities or being shunned or in physical form harmed. Employee inspiration is one of the strategies of professionals to improve effective job performance among staff in organizations. Desire is a simple mental process. Motivating is the management procedure for influencing behaviour based on the data of what make people tick. (Luthans, 1998). Luthans (1998) asserts that motivation is the procedure that arouses, energizes, directs, and sustains behaviour and performance. That is, it's the process of rousing visitors to action and toachieve a desired process. One way of revitalizing people is to hire effective motivation, which makes workers more satisfied with and committed to their careers. Money is not the only real motivator. You will find other incentives which can also provide as motivators.

The level of performance of employees depends not only on their actual skills but also on the amount of motivation each individual displays (Burney et al. , 2007). Determination is an inner drive or an external inducement to respond in a few particular way, typically a means that will lead to rewards (Dessler, 1978).

Over-achieving, talented employees will be the driving force of most firms so it is vital that group sstrive to stimulate and retain the best employees (Harrington, 2003).

The quality of individual learning resource management is a crucial influence on the performance of the company. Concern for strategic integration, commitment overall flexibility and quality, has needed attention for employees drive and retention. Financial motivation is just about the most concern in today's organisation, and tying to Maslow's basic needs, non-financial aspect only will come in when financial inspiration has failed.

According to Greenberg and Baron (2003, 2000) meaning of determination could be divided into three main parts. The first part talks about arousal that deals with the drive, or energy behind individual (s)action. People turn to be led by their interest to make a good impression on others, doing interesting work and being successful in what they do. The next part discussing the choice people make and the way their behaviour can take. The very last part handles maintaining behaviour plainly defining how long people have to persist at wanting to meet their goals. Desire can be intrinsic and extrinsic. Extrinsic motivation concerns behaviour influenced by obtaining exterior rewards (Hitt, Esser, & Marriott, 1992). Praise or positive responses, money, and the absence of punishment are examples of extrinsic or exterior rewards (Deci, 1980). Intrinsic inspiration is the determination to take action simply for the pleasure of executing that one activity (Hagedoorn and Van Yperen, 2003). Examples of intrinsic factors are interesting work, recognition, growth, and achievements. Several studies have found there to be always a positive relationship between

intrinsic inspiration and job performance as well as intrinsic inspiration and job satisfaction (Linz, 2003). That is significant to organizations in the current highly competitive business environment for the reason that intrinsically determined employees will perform better and, therefore, be more effective, and also because satisfied employees will remain loyal to their business and feel no pressure or need to move to a new firm. Deci and Ryan (2000) conducted and replicated an experiment that proved the negative impact of monetary rewards on intrinsic determination and performance.

2. 3. 1 Approaches/ Ideas of Motivation

Theories of motivation can be grouped as either representing content(needs) or a process appraoch to motivation. Content theories has an understanding of what people value as work rewards, it attempts to identify the precise factors that motivate people. On the other hand, process theories provide a more dyanmic way and is also more enthusiastic about understanding the process in which motives are developed alternatively than aiming to profer a inactive evaluation of needs. This part of the project discusses some popular content and process ideas and it offers a sign of different needs that employees bring to the work place. ( Beardwell et al, 2004)

Traditional Approach

Taylor developed a way for structuring careers that he called Scientific Management, he assumed that employees are financially determined and work to earn the maximum amount of money as they can therefore he advocated for pay bonuses. However, he assumed that manager realized more about the works being performed than the staff themselves and presumed that the gain involve was what encouraged everyone. Hence he presumed that individuals could be expected to perform almost any job so long as they were been payed enough. ( Griffin).

Furthermore, though the role of money as a motivating factor cannot be ignored but the proponents of this view have didn't take into consideration other factors of inspiration.

The Human Relationships Approach

This way assumed that employees want to feel useful and important, they have strong interpersonal needs that are usually more important in motivating employees. This approach advises professionals to make personnel feel important and invite them a degree of personal control in undertaking their obligations. This involvement will lead to an higher motivation to perform

There are several ideas of motivation which may have been developed to clarify the processes where individuals become actively employed in chasing and achieving goals and objectives related to their personal, professional and interpersonal lives (Ramlall, 2004). Some of the theories which have been considered for the purpose of this research are

2. 3. 2Hertzberg theory

Hertzberg identified the next true motivators as contributing to high morale and job satisfaction




Promotion prospects

He also observed these 'hygiene' factors whose absence or inadequacy in a job produces poor performance and dissatisfaction

Higher power policy


Working conditions

Relationship with colleagues

Hertzberg's research led him to the final outcome that the 'health' factors were rarely high motivators. People have a tendency to take fringe benefits and good working conditions for granted, but when these are removed that they had a highly demotivating effect. An income increase acquired a short-term motivating effect when it was noticed to be deserved, but rarely did the result previous for long(Mullin, 2007).

2. 3. 3 Victor Vroom's Expectancy Theory

This theory make clear the reason why a so many personnel are not motivated on their jobs and just do the necessary what to get their jobs done. It postulates that an employee is encouraged to exert a high level of effort when he or she believes work will lead to a good performance appraisal. In most organisations, employees expect a good appraisal will lead to organisational rewards like a bonus, a salary increase or promotion; and the rewards will gratify the individual's personal goals. Therefore, low drive at the job can be triggered by the fact that a employee thinks that no matter how hard he works, his, the likelihood that he'd get a good appraisal is minimal. Most employees perceive the performance-reward romance in their job as feeble; this is because organisations reward lots of things besides just performance. Therefore, employees see the performance-reward marriage as poor and demotivating if salary is allocated based on seniority, amount of service.

The rewards also have to be designed to individual worker needs. Unfortunately, many managers are limited to the rewards they can deliver, which make it difficult to personalise rewards. Also, some professionals assume that employees want the same thing, thus overlooking the motivational effects of differentiating rewards. ( Griffin, 2007)

Furthermore, Expectancy Theory brings about a knowledge of individual's goals and the linkage between effort and performance, between performance and rewards, and between the rewards and individual goal satisfaction.


A performance management system only be succesful if the people dealing with it are sufficiently motivated. The formal performance management process could turn into a disguise, with both people agreeing on the selection of action which involves minimal amount of endeavour and trouble.

The task of motivating employees and even professionals to adopt performance management seriously, and the similar task of the managers in encouraging their employees to approach the procedure in an open up, honest way, shouldn't be taken too. A jointly supportive network of motivational techniques, training, easily realized systems and path, conformance-checking and rewards is likely to be essential to ensure everyone's involvement( Mullin, 2002).

This appraisal action is required not only prior to and through the commencement of the organisation's formal performance management system, but also on a continuing basis. Your time and effort, resources and expenditure will therefore be significant. However, considering that performance management is important to any organisation's activities, this determination will be justified(Adeleye, 2009)

The connect to pay

There is significant evidence that administering performance-related pay systems absorbs much management time, while employees find such plans difficult to understand and susceptible to bias. Not surprisingly, performance-related pay continues to be very much in fashion and performance review is the main vehicle for linking pay and incentive more tightly to specific performance.

The schemes utilized by organisations in the study to web page link performance to pay varied widely in their transparency and straightforwardness - qualities been shown to be important for a scheme's efficiency. However, the research found that the impact on staff motivation got more to do with the organisational framework and the ability of individual professionals to administer the design than with the type of scheme used.

Interestingly, the satisfaction expressed by managers at the mercy of the same performance review plan mixed between departments. Among the participants illustrates the key role of professionals in providing performance reviews: "Any system is merely as effective as the individuals working it; a few of my comments would have been completely different with different line managers. "

Contrary to the philosophy behind performance-related pay techniques, compensation is not the motivator for managers that it is said to be. As one respondent said: "Just a little money is often nice but it isn't the driving push to doing a good job. " Satisfaction with performance review was highest among those professionals who experienced received training and development for promotion or had been given increased duties.

The report's authors discover that employers who use pay as a lever both to regulate costs and improve efficiency should be concerned by the findings. performance review sometimes appears to be reasonable only when goals and targets set are identified to be affordable, if managers are seen to be objective when assessing performance if judgments of performance are steady across the company.


Through Feedback: Giving feedback apart from supporting in task performance, also motivates people (Kluger and DeNisi, 1996). Employees in organisations frequently request for express a desire for reviews and the responses manufactured in appraisal provides the basis for such feedback, and thus contributes to motivation.

Appraisal and assessment rises motivation by facilitating fair circulation of rewards. Taylor et al. (1995) found out that making clear the performance habits, applying them constantly and providing people a fair ability to hear all impacted on employees frame of mind to appraisal.

Setting focuses on that are meant to improve on earlier performance is also a means where performance appraisal motivates employees. ( Fletcher, 2008).


In performance appraisal one of the main aspects of this program is when the employers talk their performance evaluations to the employees. Although some experts like (Ammons 1956) claim that the opinions process in performance appraisal has little if any effect if the individual is already undertaking on a higher level or if the work is intricate. The opinions delivery helps the organization in decision making, enhancing of output and efficiency within the business. It has been pointed out that the communication of reviews about the performance of employees and groups in an corporation is an important part of any organization's human source of information system (Harackiewicz, Larson1986: Larson 1984).

The aim of any business when doing performance appraisal is to receive feedback which feedback helps to maintain and point employee behavior to accomplishing the organizations goal and purpose and also mating a higher degree of work to accomplish these goals.

On the area of the employees performance appraisal opinions serves as a way of satisfying the necessity for information about how employees are achieving up with their personal goals as serves as a kind of social measurement among their peers. Feedback assists as a basis for determining discrepancies personal and others' performance and work goals (Carver, Scheier 1981) From both the organizations and employees viewpoint a performance appraisal responses process can provide as a way of identifying the employee's weakness and unidentified goals. Recognition of these shortcomings can help the employees to increase their degree of performance, redirect their efforts toward achieving both the organizational and personal goals, and also improve their relative standing to internal and external criteria. This achievement is of great important to the organization however, performance appraisal reviews has not only leaded right to the improvement of performance. Research has shown that the success of the opinions depends on lots of factors related to the popularity of the opinions process which range from: the valence of the message(positive or negative) characteristic of the foundation(e. g. knowledge, trustworthiness, familiarity of the work), and the receiver of the responses and also the perceived relevance and precision of the responses to employees performance and behaviour(Fisher, Taylor1979, Zuber, Behson 1998). The amount of acceptance of reviews is then likely to neither influence employees positively or adversely on the determination to improve their work levels.

For any opinions within the organization to produce any positive end result, the foundation of the opinions must be identified by the recipient as being reliable, credible, reliable, objective and properly motivated in other for reviews to be accepted. (Wyer, Budeshiem, Lambert, Swan 1994). Alternatively the amount of the feedback's approval is greatly reduced when the source of the reviews is regarded as unreliable, untrustworthy or has having ulterior motives. Once the opinions received from worker indicate an worker has performed above the organizations standard, it is normally perceived that individual goals on following work will be secure i. e. you can find high motivation on the part of the staff to work. Alternatively whenever there are negative discrepancies between your employees' goals and organizational goals, organizations try to reduce these discrepancies by increasing attempts of the employees. Invariably, people that receive negative reviews are more likely to put more work to improve their performance than individuals than people that received a confident opinions. (Carver &Scheier1981, Pod


There are different types of opinions a supplied in a perfromance appraisal system. These responses types typically helps managers or subordinates to understanding the reactions employees have to performance appraisal. (Cuselle 1987). Relating to Ilegen

et al. 's reviews process model, (1979), the top features of each responses source combined with the form of responses that best corresponds to each source's characteristic should yield the best degree of approval of the opinions received.

According to (Parker 1996), Feedback was dichotomized into

team process and

Task end result performance dimension

2. 6. 1Team process Performance Dimension

This process evaluates the behaviour representative of one team player style called the communicator. The main goal of the communicator it to help in the promptly completion of task by the team and accomplishment of its goals, Other roles of the communicator includes lively listening and involvement in the resolution of conflict within the team. The communicator also really helps to create an informal and slow paced life among associates. This performance dimensions evaluates and assesses employees' behavior while working mutually as a team in accomplishing a task. In this particular performance dimensions, peer might be in the best position to provide a more appropriate and objective and much more reliable performance score on team process system.

2. 6. 2Task Results Performance Dimension

This other performance dimension evaluates the nature and content of the results of the tasks performed specifically in the conditions of the quality and quantity of the final products produced by the employees. In the case of task final result performance, the supervisor might maintain the best position to judge behaviour or final result given the supervisor's competence is in the field and ability to judge the grade of task outcomes leading to a higher level of feedback approval by the employees.


Organisations have created the multi source appraisal and feedback programs so that they can increase the success of the performance appraisal system(Albright & Levy 1995). Within the multi source appraisal program, employees get evaluation and feedback from not only their supervisors but also from other resources such as peers, subordinates and even their customers. This form of performance appraisal came up as result of increasing variety of responsibility and activity for the supervisor and well as increasing amount of subordinate. Another contributing factor to the effectiveness of the program is the ongoing flattens of the hierarchy within the organization that might make it more challenging for supervisors to determine their subordinate. (Cascio 1995).

While some organizations are aware that their performance evaluation is multi sourced, some organizations are unaware of this fact. An appraisal program is considered multi sourced if more than one source in analyzing employees or considers all the options like customers peers etc.

The aim of consulting as many sources is to allow employees obtain true feedback reflecting their true potential face to face and also help assess a wider variance of behaviour face to face that may not be exhibited by the employee during the period of appraisal. The feedbacks on this form of appraisal are usually generally suitable by the targeted employees.

According to (Dunntte 1993, Facteau et al 1998, Fuderburg & Levy 1998, London and Smither 1995), Multi source performance appraisal has received attention from both managers and academics. Although program has resulted in many researches, many issues still continue to be unresolved.


Elements of a Good Appraisal System


One of the very most frequently measured appraisal response is Satisfaction (Giles & Mossholder, 1990). Appraisal satisfaction has been mainly viewed in 3 ways

(a) Satisfaction with the appraisal interview or session,

(b) Satisfaction with the appraisal system

(c) Satisfaction with performance rankings.

Satisfaction of performance appraisal is an indication of the amount to which subordinates are satisfied, acts as a report of the exactness and fair assessments of performance, and the believe that they will enhance their working relations using their supervisors.

In the same view, Taylor et al. (1995) conceptualized satisfaction with a four-item level of examining: if the organization should boost or change the appraisal system, whether there are less work problems arising because of this of the performance appraisal system, whether employees are satisfied with what sort of corporation conducted the appraisal, whether having appraisals is a waste materials of time.

This strategy may potentially fail to recognize between satisfaction and utility. Finally, some satisfaction measures seem to be to also fail to recognize between appraisal satisfactions with satisfaction. For instance, Dorfman, Stephan, and Loveland (1986) assessed appraisal satisfaction insurance firms employees respond to the next questions: "How satisfied were you with the discussion between yourself and your supervisor about your job performance?", "Generally, how satisfied are you with your supervisor?", "In general, how satisfied are you with your job?", and "How satisfied are you with the entire analysis of your performance?

These questions are too direct and will not necessarily talk about appraisal but rather seems to be measuring job satisfaction.


Assessing the appraisal fairness is a far more complicated phenomenon in comparison to other reactions from performance appraisal. That is due to the influence the business justice has on calculating employees' reaction to performance appraisal. This debate is consistent with Smither's (1998) a good appraisal system is of great sensitivity to issues of justice or fairness.

In days gone by, appraisal fairness was viewed as either the perceived fairness of the performance ranking or the identified fairness of the appraisal generally. Recently however, researchers in performance appraisal have brought to life the ideas of procedural and distributive justice and also have used these steps to assess and justify the problem of fairness (e. g. Korsgaard &Roberson, 1995). To this effect, appraisal fairness has been interpreted in four different ways

(a) Fairness with performance evaluations,

(b) Fairness with the appraisal system,

(c) Procedural justice, and

(d) Distributive justice.

Perceived Utility

One of the favorite reactions to performance appraisal is the energy of the appraisal

In evaluation with satisfaction and fairness, the measurement of perceived electricity has been relatively regular and uncompounded. The most frequent idea of perceived utility has focused on the usefulness of the appraisal system. -For example, Greller (1978) conceptualized electricity in conditions of the appraisal time and functional zed this with items such as "The appraisal helped me understand how I can do my job better" and "I discovered a lot from the appraisal.

Perceived Accuracy

In reviewing any performance appraisal, perceived accuracy should be used as a criterion because it presents a unique case in comparison with other typical reactions that are assessed.

'Cawley et al. (1998) reported that almost all studies appear to confound precision with other reactions, most notably fairness-. Within this analysis the employees recognized the performance appraisal as not been correct.


It is important in this work to consider the employees behaviour towards performance appraisal itself and its own feedback. In virtually any appraisal system the mangers learn than the employees thus giving a kind of reception for the employees to the appraisal process. Employee's attitude towards performance may also be change by making the appraisal system about them rather than about how exactly the company can earn money. In the two studies conducted by Levy and

William in 1992 and 1998, there's a recognized knowledge in predicting appraisal reaction in conditions of job satisfaction and organisational commitment. The final outcome from the studies was attracted as: The employees who consider they understand the appraisal system used in the organisation are likely to favour important organisational variables in the foreseeable future and also have the following characteristics

They are more accepting and typically favours the appraisal system and its own feedback.

They have significantly more satisfaction on their job.

They are highly committed to the company.

They are most likely to rate the performance appraisal as fair

According to Mount 1984 for performance appraisal to be conducted in a powerful manner and for this to be accepted, the unique perceptive capacity of both employees and the mangers must be taking into consideration. In conclusion for employees to truly have a good attitude towards performance appraisal, the next should be studied under consideration.

There should be considered a system of formal appraisal.

It should be conducted frequently

Supervisors must have more understanding of the appraisal process

Employees must have an opportunity to appeal their ratings

The organisation environment should be co operative somewhat than competitive

The plan of the company should also deal with weakness somewhat than only acknowledge strength

Performance and Leadership

In most instances for and performance appraisal to be looked at as good the leadership doing the process must be recognized in an optimistic light. This helps to determine that there surely is appositive romance between Performance and leadership. Eventually it's the individual staff who either performs, or does not perform; an activity but motivation on the part of the first choice can ensure performance of any process. For an organization to perform an individual must reserve his personal goals, to strive for the collective goals of the organization (Cummings and Schwab, 1973). Within an organizational context, the mother nature of performance is identified by the organization itself (Cummings and Schwab, 1973). Employees and their frame of mind to work are of paramount importance to the achievement of any organizational goals. Thus, effective control enables greater contribution of the complete workforce, and can also affect both individual and organizational performance (Bass, 1997; Mullins, 1999).

It is normally thought that the success of a business is largely based mostly the leader's ability to optimize human resources (i. e. its employees). A good leader understands the value of employee's performance in reaching the goals of the business, thus performance appraisal and this motivating these employees is of definite importance in achieving these place goals and goals. In other for any organization to obtain a powerful and useful work system, the individuals within the organization need to be inspired to invest themselves in the organization's objective (this inspiration may be accomplished through effective performance and prize system): the employees need to be stimulated in order to succeed; hence a powerful organizations requires an effective leadership (Wall, Solum and Sobol, 1992; Maritz, 1995). To possess an effective firm, there must be effective and rousing relations between your people involved in the company (Paulus, Seta and Baron, 1996).

It has been broadly accepted that effective organizations require effective leadership which organizational performance will suffer in direct proportion to the neglect of the (Fiedler and House, 1988). Furthermore, it is normally accepted that the success and efficiency of any set in place of people is largely and mostly dependent on the quality of its leadership a highly effective leader's behavior facilitates the fulfillment of the follower's desires, which then ends in effective performance (Fiedler and House, 1988; Maritz, 1995; Ristow, et al. , 1999

Leadership, relating to(Cummings and Schwab, 1973). is perhaps the most carefully investigated organizational adjustable and that simple fact has a potential effect on employee performance. An efficient leader understands that employees' desire as well as power and weaknesses has a significant influence on the decision making, actions and romantic relationship.


Although the books on appraisal response lacks a theoretical platform, researchers have not carefully considered how the various performance appraisal reactions might work together. Furthermore, these literature has shown the methods to performance appraisal and desire. It has also discussed different types of responses system and has examined the behaviour of employees to work because of this of performance appraisal. However the above books leaves with a major question in what part performance appraisal actually play in motivating employees to execute better at work.

The next chapter will focus on the research technique, the research design and statistical technique used in the study work.

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