The need for performance appraisal as an instrument to understand steps to make better use of the available specialized skills and knowledge, also how to meet future troubles and achieve goals, was explained by Armstrong (2006). He also described that performance appraisal can help increase the skills and capabilities of an individual and the organization as a whole. Corresponding to Szilagyi & Wallace(1990) it is through this technique of performance appraisal that the organization gets opinions and review on the performance success of the staff. (Wiese & Buckley, 1998) employees within an business can understand and know their degree of skills and knowledge and will know how to utilize their capacities and thus can make proper job decisions.
The approach to performance appraisal empowers the employees to achieve their targets independently by enhancing their performance by understanding their drawbacks. Through this way it's possible that the merged performance targets of people will ultimately contribute to the tactical goal of the company. According to a survey by CIPD (Chartered Institute of Personnel and Development ) in 2005 it was seen that almost 65% organizations do single annual performances appraisal and 27% twice each year.
Human resources is a valuable asset for each and every company thus all organizations make an effort to improve upon and keep maintaining the prevailing skilled employees as it is very difficult to replace skilled labour. Thus performance appraisal in every sense helps an organization keep track of its staff skills and knowledge and take advantage of it in an effective way (Amstrong and Baron, 2004). Performance appraisal seeks to boost and update the performance of the employees, it is merely by using employees who perform well can a business its achieve strategic targets (Michlitsch, 2000).
Performance appraisal has various purposes (Edmonstone1996) including building rapport and proper route of communication between the superior and subordinate though the responses process. Understanding the region of improvement of the worker and finding ways to enhance the performance along with discovering the area in which the employee needs training. Companies place specifications for performance and based on the set specifications performance they measure the performance of the employees Appraisal helps to find out exactly based in performance who must be given promotion and who should be demoted.
Characteristics of performance appraisal
According to (Caruth &Humphreys, 2006) performance appraisal system is catered to the needs of a company and predicated on its strategic objectives and is because careful thinking. Though performance appraisal method varies among companies in both private and general public sector, all successful appraisal methods possessed typically similar characteristics (Boice & kleiner, 1997).
The process of appraisal should combine with the business and its own activities. Every group must have written and well-planned rules, procedures and strategies for the execution of performance appraisal (Allan1994).
In order to evaluate performance in a important way, there must be a standard strategy which would assist in preventing performance appraisal method being simply a discussion between the appraiser and the subordinate. Relating to Armstrong(2006) there are specific criteria predicated on which performance appraisal can be assessed.
The performance appraisal method should go hand in hand to the various proper goals of the company.
The individual functions and responsibilities must also be attended to in the appraisal method.
The whole process of performance appraisal system should focus on the ultimate results or end result or effect.
The procedure for performance appraisal should act as a medium for communication and really should be able to provide proper responses in every respect.
In organization where the results can be measured it is not hard to put into action the performance appraisal process while it is difficult to perform it in companies where the performance and outcome measurement is challenging. Marsdon(1999) " Any performance appraisal system that didn't consistently evaluate work performance accurately cannot be considered a highly effective one". In certain organizations were the performance standards are not arranged and there are no evidently defined aims for the business to accomplish, the execution performance appraisal would be in vain. To get a performance appraisal to work there must be an discussion and available communication on the list of superior and subordinate. Corresponding to O'Reilly and Anderson, (2006)communication happens when the administrator gives reviews to the subordinate. They interact and discuss the on the performance of the staff and the expected performance. The managers of any company must ensure that their subordinates know the level of performance they exhibit; this can be done only by making use of a competent performance appraisal system (Lee 2005). The appraiser also should be productive and his work also should be effective combined with the performance appraisal program in the company. " The appraiser should develop an social relationship link based on trust, openness, distributed control and reduced defensiveness in working with difficult subject areas" (Piggott-Irvine, 2003). Matching to Allan (1994), the success of a performance appraisal system lies in the hands of the appraiser, thus the appraiser should be well trained and really should know the process well and really should have the ability to give proper responses to employees. (Fink and Longenecker 1998) to conduct performance appraisal effectively 10 characteristics are necessary for the managers.
The supervisor should know what kind of performance appraisal method has been adopted in the business.
The manager can connect to the subordinates and make them alert to the performance targets.
The managers can make decisions effectively.
They also should have the capability to coach the subordinate and provide training and help to them.
Communication skill is very important for the managers as they have to communicate with the employees verbally and on paper.
They should have the abilities to encourage and empower the subordinates and should be able to delegate work to them properly.
Managers should be good observers.
They should take procedures to help the employees develop in their section of work and also in an overall way.
They should maintain a position to make sure that no issues occur in the business and all problems are mitigated and fixed properly. Thus problem handling skill is important.
Managers are liable to know the corporate law to certain extend and should comply with regulations.
Managers however took little steps to ensure that the appraisers or subordinate have enough capacity to do the appraising. Every employee in the business makes valuable contribution to the organization; this is attained by setting goals for them individually, which would also assist in measuring them. As the goals are being arranged for the average person, they should be consulted so that it will improve after their determination towards reaching those goals. If the goals or objective collection aren't easy to realize and are place without talking to the employee will reduce their dedication (Locke & Lathom 1990). Foster (2000) also has agreed to this aspect that such tactics would help in bringing in a kind of motivation one of the employees. Allen (1994) described the value of proper communication and the capacities of the appraiser. Employees need to have a rely upon the appraisers and their potential to provide proper reviews.
Performance ranking errors
Accuracy of recall
In many companies some of the superiors do not keep a written take note of of their subordinate's performance and in the long run they evaluate the performance of the employee based on their memory space and what they remember about the staff performance which can turn out to be faulty. Thus to be able to bring in a validity and make the performance system effective the managers should make an effort to make proper notice of the staff performance.
The halo effect
An employee might possess a characteristic which might be not the same as others which can be both negative and positive. That could be exceedingly good or bad for the organization. When this happens the superior would be biased or influenced by that particular persona of the staff and they forgo other skill and features of the worker. Thus their conception of the staff performance completely is determined by that characteristic of the staff. This may lead to a performance analysis that's not effective.
Thus the superiors or managers must make an effort to observe the employee properly and understand the specific characteristics and examine them.
Nisbett & Wilson (1997), " halo problem is the longest acknowledged, most pervasive and yet least grasped form of score error". Relating to them the score depends on the total common sense of the employee behavior and gives a consistent credit score without evaluating personas separately. Bretz, Mikovich and Read are of the opinion that halo results are interrelated collection of appraisals or ratings as the raters do not rate the tendencies on the basis of a single figure. Nathan & Lord (1983) are of the idea of view that employees will be continually or always rated as good or poor performers. Even if the people have changed that would not be shown in the score or analysis.
In this form of rating mistakes managers understand the patterns or persona of a person predicated on the category or group he belongs. Which may be based in religious beliefs, caste, time etc. the director might have a good or bad impression about this group and thus the average person. I many conditions the perception of the managers about the employee behavior is might not exactly have any relation to fact. This form of stereotyped tendencies can lead to poor performance appraisal system. Thus all professionals should try to perceive the true characteristics and behavior of the subordinates and make word of these performance.
Differences in Ranking Scales
This kind of problems occurs when two raters rate the same habit differently predicated on their internal expectations and perceptions and judgments. This happens mostly where there are no well described goals for the staff and there are no expectations set to them. Thus the professionals will measure the performance of the staff based on their internal benchmarks.
Projection is the situation where the supervisor rates the employee performance based on his worth and characters and not predicated on the predefined performance standards.
Such an error occurs when the professionals evaluate the performance of employees by comparing it with the other employees rather than predicated on the standards place.
This kind of one occurs whenever a supervisor evaluates the performance of the employee based on occurrences that have took place recently without considering the previous or earlier actions.
A manager at times confuses an employee's experienced work behavior with its cause. There may be many reasons behind an employee's unfavorable habit. However the right cause can be grasped by the director only if the manager records the employee patterns properly and regularly. Thus the true cause behind unprecedented habits can be easy understood and rectified. Thus if the superior takes measures to record the patterns of the employee time to time then steps can be taken to coach and offer proper training to eliminate any undesirable work behaviors of the staff.
Different supervisors have varying tendency to rate their employees. They rate their employees based on their strictness or leniency. Some managers may be rigorous in the way they measure the performance and may give lower results even for individuals who succeed. Thus the rating is not as expected or right. Similarly there may be some other professionals who may rate their employees predicated on their leniency. Thus lenient managers give good scores to the employees. That is also not a right kind of performance evaluation process.
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