Historically, performance appraisals have been used for administrative purposes, such as retention, discharge, promotion, and salary administration decisions (Murphy & Cleveland, 1995).
As a introduction, Performance Appraisals
are judgement of the characteristics, traits and performance of others. On the
basis of these judgements, we assess the worth or value of others, and identity
what is good and bad. In industry, performance appraisal is a systematic
evaluation of personnel by supervisors or others familiar with their
performance because employers are interested in knowing about employee
performance (Monappa and Saiyadain, 2011).
In addition to that, traditional performance
appraisal simply involves evaluative supervisory comments on past performance.
Such a process does not involve any kind of management, per se, as the only
performance that can be managed is present and future performance. Performance
appraisal involves hierarchical, downward communication from supervisor to subordinate
concerning the value the supervisor places on the subordinate’s performance
(Mello, 2013).
Furthermore, any action or process that can be associated to performing a task or function can be classified as performance(Mansaray,2019). First and foremost, Performance evaluation of employee is the system of measuring employees' performance (Neo et.al, 2009). And also according to Amstrong (2009), Performance appraisal can be defined as the formal assessment and rating of individuals by their managers at or after a review meeting. And also according to Dina Van Dijk and Michal M Schodl performance appraisal or performance evaluation refers to what are the methods and processes that organization uses to measure the level of their employees.In this scenario employees are given feedback considering and measuring their performance (DeNisi and Pritchard, 2006 cited in Dijk and Schodl, 2015,p.716-721).
In order to Aggarwal and Thakur (2013), Performance appraisal has been synonymous with performance review, performance evaluation, performance assessment, performance measurement, employee evaluation, personnel review, staff assessment, service rating. The development of performance appraisal has four distinct phases. It is called TEAM (Technical, Extended, Appraisal and Maintenance). Performance Appraisal is reviewing past performance, rewarding past performance, goal setting for future performance and employee development(Aggarwal and Thakur, 2013).
Last but not least, according to (Dijk
and Schodl, 2015), the term performance appraisal (or performance evaluation)
refers to the methods and processes used by organizations to assess the level
of performance of their employees. This process usually includes measuring employees’
performance and providing them with feedback regarding the level and quality of
their performance. The main goal of the PA is to improve employee performance.
Objectives of performance appraisal,
- The appraisal lets the boss and subordinate develop a plan for correcting any deficiencies, and to reinforce things the subordinate does right.
- To identify the strengths and weaknesses of employees to place right
men on right job.
- To maintain and assess the potential in a person for growth and
development.
- To provide a feedback to employees regarding their performance and
related status.
- It serves as a basis for influencing working habits of the
employees.
- Review the promotional and career planning purpose. provides an opportunity to review employees' career plans in light of his or her exhibited strengths and weaknesses(Dessler and Varkkey,2011).
List of references
Aggarwal, A. & Thakur, G.S.M. (2013) Techniques of Performance Appraisal-A Review International Journal of Engineering and Advanced Technology (IJEAT) Volume-2, (Issue-3) [online].Available at: https://www.researchgate.net/publication/264458875_Techniques_of_Performance_Appraisal-A_Review [Accessed on 20th of November 2022]
Amstrong, M. (2009) ARMSTRONG’S HANDBOOK OF HUMAN
RESOURCE MANAGEMENT PRACTICE. 11th edn [online].Available at: Armstrong's
Handbook of Human Resource Management Practice by Armstrong, Michael. - PDF
Drive [Accessed on 20th of November 2022]
DeNisi, A.S.,Pritchard, R.D.,2006. Performance
appraisal, performance management and improving individual performance: a
motivational framework. Management and Organization Review 2 (2), 253–277.
Dessler and Varkkey, (2011) HUMAN RESOURCE MANAGEMENT . ( p. 320) 12th edn. Dorling Kindersley, India.
Dijk, D. V. & Schodl, M. M. (2015) International Encyclopedia of the Social & Behavioral Sciences (pp.716–721) 2nd edn. Oxford, Elsevier [online]. Available at:https://www.researchgate.net/publication/282613144_Performance_Appraisal_and_Evaluation[Accessed on 19th of November, 2022]
Jafari, M., Bourouni, A. and Amiri, R. H. (2009) 'A New Framework for Selection of the Best Performance Appraisal Method', European Journal of Social Sciences , 7(3) [online] Available at:https://www.researchgate.net/publication/228901398_A_new_framework_for_selection_of_the_best_performance_appraisal_method[Accessed on 19th of November, 2022].
Mahapatro,
B. B. (2010) HUMAN RESOURCE MANAGEMENT. New Age International (P) Ltd,
New Delhi.[Online]. Available at: https://www.pdfdrive.com/human-resource-management-d161022681.html
[Accessed on 21st of November 2022]
Mansaray, H. E. (2019) 'The Role of Human Resource Management in Employee Motivation and Performance-An Overview', Budapest International Research and Critics Institute (BIRCI-Journal) Humanities and Social Sciences, 2(3)[Online]. Available at:https://www.researchgate.net/publication/334900863_The_Role_of_Human_Resource_Management_in_Employee_Motivation_and_Performance-An_Overview[Accessed on 21st of November 2022].
Mello, J. A. (2013), Strategic Management of Human Resources, 3rd edn, Cengage Learning
Monappa, A. and Saiyadain, M. S. (2011), Personnel Management, 2nd En, Tata McGraw Hill, Education Pvt. Ltd.
Murphy, K.R. & Cleveland, J.N. (1995), Understanding Performance Appraisal: Social, Organizational and GoalBased Perspectives, Sage, Thousand Oaks, CA.
Neo, R. A., Hollenbeck, J. R., Gerhart, B. and Wright, P. M.(2009) Human Resource Management. The McGraw-Hill Companies, New York.
Agreed on the content above Sanath. However, for healthcare institutions, performance evaluations can be extremely difficult, and many experts are also worried about the efficacy of performance in other highly competitive industries, such as the banking sector and the automobile industry (Bartz, 2017 & Abbas, 2014). It is essential to conduct formal performance reviews to gauge employees' productivity (Curzi, Fabbri, Scapolan & Boscola, 2019; Tweedie, Wild, Rhodes & Bennie, 2019). The idea that one's likelihood of receiving rewards is significantly impacted by his or her performance inside the organization is known as expectancy theory (Hiriyappa, 2015)
ReplyDeleteThank you very much Romeda, highly appreciated on your comment and understood that there might be some difficulties on performance appraisal processes those who are working in automobile and banking industries through referring the references and agreed that evaluation difficulties can be overcome using the expectancy theory (Hiriyappa, 2015).
DeleteThank you very much Romeda, highly appreciated on your comment and understood that there might be some difficulties on performance appraisal processes those who are working in automobile and banking industries through referring the references and agreed that evaluation difficulties can be overcome using the expectancy theory (Hiriyappa, 2015).
ReplyDeleteGood topic Sanath, Further Organizations conduct performance appraisal for 3 main reasons that is, for the purpose of effective communication, decision making and motivating. Performance appraisal methods can be broadly classified under objective measures and subjective measures. The important methods can again be classified traditional and modern methods(Ghutke, November 2016)
ReplyDeleteThank you very much Rayan, highly appreciated on your comment and furthermore, According to (Muraly, 1994 cited in Mukherjee, 2012, p.140). Negative impact of favorable evaluation directly pave the way for raising suspicions in the minds of the employees. The main goal of the PA in organizations is to improve employee performance (Murphy and Cleveland, 1991 cited in Dijk and Schodl, 2015, p.716).There are numerous methods to measure employee’s performance appraisal but some of these methods are not suitable in some cases. Effective appraisal systems should address clarity, openness, and fairness; recognize productivity through rewards; and be cognizant of appraiser leadership qualities (Winston & Creamer, 1997 cited in Jafari, Bourouni and Amiri, 2009).
DeleteThe performance appraisal system is used by various companies to reward their employees in the form of bonuses, promotions, salary raises, and other benefits in addition to being a crucial HRM tool for employee development. Different theories of motivation, including the reinforcement theory, use performance evaluation to reward personnel (Talya and Berim, 2010).
ReplyDeleteThank you very much on your comment Ranga and sharing additional knowledge, Further to the above, any organization cannot achieve its goal without the best-performing employees. When the organization achieves its goal employees are a significant factor. For that employees need to be motivated toward the goal (Daoanis, 2012). This will need better Human Resource Management Policies to connect to the success of the organization. Performance appraisal is useful to measure the contribution of employees. Its influence on company productivity and results (Daoanis, 2012).
DeleteAccording to Mayo (1998) performance appraisals have become a practice in many organizations, where they develop a set of
ReplyDeletecore competencies for the organization and to seek to evaluate the
degree to which individuals can demonstrate them. Such an activity
provides a useful link between training and development and the
review of an individual’s performance through the appraisal process
Thank you very much on your comment Zameera, and sharing additional knowledge, Further to the above, According to Devi & Shaik (2012). training and development are complementary parts of the same process. They are interconected and interdependent, rather than sequential and hierarchical. Training and development is very crucial to the employees, the organization and their effectiveness.
DeleteEvery organization runs with the effective deployment of human resource. Human resource is pivotal in setting and realization of objectives. The performance of any organization is functionally dependent upon the total performance of the deployed workforce. According to Peter Drucker (1996) has aptly said that an organization is like a tune; it is not constituted by individual sounds but by their synthesis. The success of an organization will therefore depend on its ability to assess accurately the performance of its human resource and use it objectively to optimize them.
ReplyDeleteThank you very much Chathuri, highly appreciated on your comment and furthermore, employee performance appraisal system is recognized as an evaluation criterion of the Human Management System of a company (Ashima Aggarwal, 2013). That has to be properly designed and it will be revealed the process of employees. Also, that is not only the successful basis for the organization but also it is provided valuable facts about Human Resource functions performed by the organization (Ashima Aggarwal, 2013).
DeleteI agreed with your content Sanath, Performance Appraisal is one of the most important HRM procedures. This is because an employee's appraisal would either mold a frame of behavior that was satisfied after being appreciated or that was dissatisfied after not being appreciated (Kadiresan, et al., 2015). The performance assessment process has been used as a tool to improve employee performance, distribute rewards, and strengthen competences. It has the capacity to alter the effectiveness and performance of the business (Hermel-Stanescu, 2015)
ReplyDeleteThank you very much on your comment Zacky, and sharing additional knowledge, Further to the above, Performance appraisal systems are to be aligned with the vision and mission of the company (Daoanis, 2012). More so, Performance appraisal is a major criterion for managing Human resources in an organization. This is used by companies as a method and process to evaluate the level of performance of their employees (Dina Van Dijk and Michal M Schodl, 2015).
DeleteAgreed with the content. Further, According to Grote (2002) the official documentation of a person's performance in relation to predetermined goals is called a performance appraisal, often referred to as a performance review. It is a part of the PMS. The system has evolved into a crucial management tool for enterprises today. One may argue that overseeing employees' performance is just as crucial as any other task that managers complete during the year.
ReplyDeleteThank you very much on your comment Prabuddha, and sharing additional knowledge, Further to the above, performance appraisal focuses on reviewing what has been achieved in the past and using the data to plan the future to achieve company goals (Mollel Eliphas R.,Mulongo L. S.,Razia M., 2017). Also, this is a system to evaluate employees individually with the potential of developing them in their future performance in accordance to the working goals. It is a set of agreed actions to be undertaken by managers and employees to enhance individual performance (Mollel Eliphas R.,Mulongo L. S.,Razia M., 2017).
DeleteHi Sanath, Agreed with the shared content. According to the article of (Naeem and Ahmad, 2022), In January 2015, after the usual performance appraisal cycle had already started, the president and CEO of Mobilink convened a meeting with the HR team to discuss critical concerns relating to the company's performance rating system, The misalignment of organizational goals with employee goals was one such problem, Since the business did not achieve its anticipated revenue growth targets, it was necessary to emphasize the connection between individual and organizational performance, Nonetheless, many employees received wage increases, bonuses, and promotions, then the CEO of Mobilink and the HR team agreed that there was a need for changes in the existing performance appraisal system to bring employee objectives in line with organizational objectives (Naeem and Ahmad, 2022).
ReplyDeleteThank you very much on your comment Ann, and sharing additional knowledge and I highly appreciate it. Moreover, I work for of one of the leading Animal Feed production company, in early 2019 even if the management set up many targets for those who are in each department in its annual budget proposals. But that could not be achieved many times. And also, management involvement is very low in the organization’s operation works. Eventually it is proposed to introduce annual performance appraisal system to evaluate their employees and later management understood that when the time to time evaluate the performance of their employee’s targets will be able to be achieved easily than the previous.
DeleteAgreed to the content Sanath, further to add, An employee’s performance is a major determinant of the productivity of an organization. There are various reasons that affect the performance of employees and in simple terms, performance appraisal is a tool to understand the performance of an employee and analyze the reasons for such performances. Practices of Performance Appraisal systems have been greatly varied from a simple method where only an HR Manager reviews the performance of the employees to a 360-degree feedback system where not only the manager but also peers, colleagues, and clients are given an opportunity to review the performance of one another. Performance Appraisals have seen a great evolution in them (Balu et al, 2017)
ReplyDeleteThank you very much on your comment Sachini, and sharing additional knowledge. Further to above, employee performance appraisal system is recognized as an evaluation criterion of the Human Management System of a company (Ashima Aggarwal, 2013). That has to be properly designed and it will be revealed the process of employees. Also, that is not only the successful basis for the organization but also it is provided valuable facts about Human Resource functions performed by the organization (Ashima Aggarwal, 2013).
DeleteHi Sanath, Interesting topic and I would wish to comment that many companies have implemented tools for measuring their performance in order to stay in business and come in contact with tough competition. Organizations must face not only to more demanding conditions but in the current period to the world financial crisis as well. Due to these reasons, the organizations are forced to measure performance of the organization and contribute to the stability of the organization in today´s competitive environment. As the Tootell (2009) stated “since 1980s there has been an increasing emphasis on the importance of HR measurement.” Yeung and Berman (1997) declared that “HR measures should be impact rather than activity orientated, forward looking than backward looking, and should focus on the entire HR system not just on individual practices.”
ReplyDelete(Kumar and Garg, 2011).
Thank you very much on your comment Derrick, sharing additional knowledge and highly appreciated it. Moreover, Performance appraisal is a major criterion for managing Human resources in an organization. This is used by companies as a method and process to evaluate the level of performance of their employees (Dina Van Dijk and Michal M Schodl, 2015). This includes measuring employees and getting to know the level of quality of their performance. The main purpose of performance appraisal is to improve the level of employees to achieve the organizational goal (Dina Van Dijk and Michal M Schodl, 2015).
DeleteAgreed on the content above Sanath, However, HRM seeks to continuously assess the competency requirements of various personnel in order for them to do the job assigned to them effectively and to create opportunities for these abilities to be developed. Performance appraisal is an essential component of HRM, since HRM deals with people. "People" are a significant and precious resource that every organization or institution has in the form of its employees. (Dr.S.Jansirani, Mr. R.Hatrikrishnan, Mrs.D.Jaya Kani, and Ms.A.Saisathya, 2013) Performance appraisal is sometimes viewed as the most important function of human resource management (Selvarajan R., 2008).
ReplyDeleteAgreed to the content sanath. Performance appraisal is one among the most important procedure in HRM. It is nothing but the assessment of work done. This assessment can be used to evaluate the strong and weak areas of an employee. This performance appraisal can be used to improve company business at the same time employee self improvement can also be made. Periodic appraisal will help to improve themselves which will give the employee a self satisfaction
ReplyDeleteThank you very much on your comment Udaya, and sharing additional knowledge. Further to above, any organization can not achieve its goal without the best-performing employees. when the organization achieves its goal employees are a significant factor. For that employees need to be motivated toward the goal (Daoanis, 2012). This will need better Human Resource Management Policies to connect to the success of the organization. Performance appraisal is useful to measure the contribution of employees. Its influence on company productivity and results (Daoanis, 2012).
DeleteA performance appraisal system plays an important role in the development of an organization and Employee’s growth. Every organization has their own way of appraising the employees. There is a relation between performance appraisal and employee. Investigators argue that performance appraisal is not a very reliable tool to measure employee and organizational performance. The supervisors should discuss achievable targets with the employees and should do regular reviews. Timely feedback should be discussed with the individual employees. Employees who achieve their targets should be recognized to increase their satisfaction and employees who have poor performers should be criticized. The gaps realized should be sealed through training and development (Muriuki and Wanyoke, 2021).
ReplyDeleteThank you very much on your comment Sarasi, sharing additional knowledge and I highly appreciated it. Moreover,performance appraisal systems are to be aligned with the vision and mission of the company (Daoanis, 2012). More so, Performance appraisal is a major criterion for managing Human resources in an organization. This is used by companies as a method and process to evaluate the level of performance of their employees (Dina Van Dijk and Michal M Schodl, 2015). Performance appraisal is a major criterion for managing Human resources in an organization. This is used by companies as a method and process to evaluate the level of performance of their employees (Dina Van Dijk and Michal M Schodl, 2015).
DeleteAgreed to the content Sanath, further to add, An employee’s performance is a major determinant of the productivity of an organization. There are various reasons that affect the performance of employees and in simple terms, performance appraisal is a tool to understand the performance of an employee and analyze the reasons for such performances. Practices of Performance Appraisal systems have been greatly varied from a simple method where only an HR Manager reviews the performance of the employees to a 360-degree feedback system where not only the manager but also peers, colleagues, and clients are given an opportunity to review the performance of one another. Performance Appraisals have seen a great evolution in them (Balu et al, 2017).
ReplyDeleteThank you very much on your comment Sachini, and sharing additional knowledge. Further to above, employee performance appraisal system is recognized as an evaluation criterion of the Human Management System of a company (Ashima Aggarwal, 2013). That has to be properly designed and it will be revealed the process of employees. Also, that is not only the successful basis for the organization but also it is provided valuable facts about Human Resource functions performed by the organization (Ashima Aggarwal, 2013).
DeleteAgreed Sanath. Further, performance appraisal and evaluation is identified as the identification, Measurement and management of human performance in organizations and provides individuals with useful feedback and coaches them to higher levels of Performance (Gomez-Mejia, 2007)
ReplyDeleteThank you very much on your comment Miyuru, sharing additional knowledge. Furthermore, performance appraisal system can be used to improve the standard of employees’ work and as a control process in the administration (Nancy Wairimu Mwema, 2014). Review the promotional and career planning purpose. Provides an opportunity to review employees' career plans in light of his or her exhibited strengths and weaknesses (Dessler and Varkkey,2011).
Delete