Purposes & Benefits of Performance Appraisal
 |
| Figure 3 |
Purposes of Performance
Appraisal
The
Performance appraisal is become a term used for a variety of activities through
which organizations seek to Evaluate employees and develop their competence,
improve performance, and allocate rewards & benefits (Fletcher, 2001). This
identified the following purposes of performance appraisal (Grote (2002):
1.
Providing the feedback to employees about their performance.
2.
Concerning pay increases, promotions, layoffs for employees.
3.
Encouraging performance improvement.
4.
Setting and measuring goals.
5.
Determining the individual and organizational training and development needs.
6.
Confirming the good hiring decisions.
7.
Provide legal support for personnel decisions.
8.
Improving overall organizational performance
Also
additional purposes as performance appraisal including motivating employees,
assessing employee potential, improving working relationships, assigning work
more efficiently, and assisting in long-range planning (Thomas and Bretz (1994).
The performance appraisal is served two basic purposes, the first one is evaluative
as the term “appraisal” implies, and the second one is developmental.
(Brinkerhoff &Kanter,1980, McKinnon, 1993, Rynes, Gerhart, & Parks, 2005).
The evaluative function which there has been progress toward goals as a result
of the employee’s efforts. It’s a backward looking where past performance is
reviewed in light of the results achieved. The performance appraisals have five
major parts are salary management, terminations, layoffs, promotions and identifying
poor performance (Boswell & Boudreau, 2000). It’s not use for enable organizations
to make decisions about the employees, but also to compare candidates on some
type of objective basis (Brinkerhoff & Kanter).
The developmental function of forward looking, directed towards to increasing the capacity of the employees to be more productive, effective, efficient and satisfied in future. It covers such as job skills, career planning, employee motivation and effective coaching between mangers and subordinates in the organization. It is concerned with enhancing attitudes, experiences and skills that improve the effectiveness of an employees. (Boswell & Bourdeau, 2002).
Benefits of Performance
Appraisal
According to Mohrman, A.M(1989),
the formal appraisal process designed and implemented system can create many
benefits for organizations. the appraisal process can:
a)
provide managerial instrument for goal setting and performance planning with employees
in the organizations.
b)
improve employee motivation and productivity.
c)
encourage interaction concerning employee growth and development the
organization.
d)
available a basis for wage and salary changes.
e)
generate information for a variety of human resource decisions
There
are four ways in which performance appraisal can help organizations. performance
appraisal can improve organizational 6 decisions including reward allocation,
promotions, layoffs and transfers. the performance appraisal can improve
individual career decisions and decisions about where to focus one time and
effort. Individual employees can take many decisions concerning their present
and future roles in the organization (Murphy and Cleveland (1995). They must
decide how they will develop future strengths and what sort of career goals
they should pursue. Performance appraisal can provide an accurate, timely and
detailed feedback to assist in the quality of these decisions. A third way that
performance appraisal can assist organizations is by providing a set of tools
for evaluating the effectiveness of current or planned ways of operating. The
performance appraisal can impact employees’ views of and commitment to their
organization. The quality of performance appraisal and the feedback has
perceptions of the fairness, legitimacy, and rationality of a wide range of
organizational practices.
The
performance appraisals can help to encourage the supervisors to observe their
employees more closely and do a better job of managing them (Oberg (1972). All above
four benefits will not automatically accrue, because the mere presence of the
performance appraisal system in the organization (Murphy & Cleveland). the
organization that do an good performance appraisal system may incur some or all
of these benefits.
Brinkerhoff, D. W., & Kanter, R. M.
(1980). Appraising the performance of performance
appraisal.
Sloan Management Review
Boswell,
W. R., & Boudreau, J. W. (2002). Separating the developmental and
evaluative
performance
appraisal uses. Journal of Business & Psychology
Fletcher,
C. (2001). Performance appraisal and management: The developing research
agenda.
Journal of Occupational & Organizational Psychology
Grote,
R. C. (2002). The performance appraisal question and answer book: A survival
guide
for
managers. New York: American Management Association.
Mohrman,
A. M., Resnick-West, S. M., & Lawler, E. E. (1989). Designing
performance
appraisal
systems: Aligning appraisals and organizational realities (1st ed.).
McKinnon,
N. C. (1993). Development of a performance appraisal program for
nonacademic
staff at Atlantic Baptist College.
Murphy,
K. R., & Cleveland, J. (1995). Understanding performance appraisal:
Social,
organizational,
and goal-based perspectives.
Oberg,
W. (1972). Make performance appraisal relevant. Harvard Business Review
Rynes,
S. L., Gerhart, B., & Parks, L. (2005). Personnel psychology: Performance
evaluation
and pay for performance. Annual Review of Psychology
Thomas,
S. L., & Bretz Jr., R. D. (1994). Research and practice in performance
appraisal:
Management
Journal
Hi Dineth agreed on the article. Adding some points to this performance appraisal can be conducted by many parties as supervisory rating of subordinates, Employee rating managers, Team/peer rating, self-rating, Outsider rating and 360-degree feedback (Mathis & Jackson 2010).
ReplyDeleteThank you for your comments Lakshan. Agree with your view. Performance appraisal is become a term used for a variety of activities through which organizations seek to Evaluate employees and develop their competence, improve performance, and allocate rewards & benefits (Fletcher, 2001).Also above facts are discuss in next blogs.
DeleteA well-organized elaboration of the theory. The performance appraisal is one way to help establish where to focus educational and development efforts. Performance appraisal results can be used to shape and design programs targeted at individual employees or groups of employees with similar needs (Narcisse & Harcourt, 2008). According to (Sajjad, 2016) the Organizations need to keep their Human Resource at their highest efficiency level to survive within today’s competitive world. In order to the above need, 360-degree appraisal plays a vital role in providing in-depth information and evaluation about the performance of employees and development plans and requirements of employees in the future for the Organization (Baroda et al., 2012).
ReplyDeleteThank you for your comments Nirmika. Agree with your view. additional purposes as performance appraisal including motivating employees, assessing employee potential, improving working relationships, assigning work more efficiently, and assisting in long-range planning (Thomas and Bretz (1994).also i discus the above points are in next blogs.
DeleteHi Dineth , You have clearly detailed purposes and benefits of performance appraisal. Adding to that I would like to mention regarding the Automating performance Appraisal. Automated systems offered by several vendors provide common formats, integration with compensation, and development and succession planning. Further to the Mathis & Jackson (2007) these systems can help a manager identify who are the top performers in the company, or a breakdown of workers with certain competencies (Mathis & Jackson ,2007).
ReplyDeleteThank you for your comments Lakshan. Agree with your view. The performance appraisals have five major parts are salary management, terminations, layoffs, promotions and identifying poor performance (Boswell & Boudreau, 2000).so some of them can be automated also the automated one has pros & cons.
DeleteHi Dineth, Well explained article. Further to the points you've added, The ultimate benefit of performance appraisal is (indirectly) boosting overall organizational performance. However, Randell (1994) argues that PA is the systematic evaluation of individual performance linked to workplace behavior. Appraisals often take the form of an appraisal interview, usually annual, supported by standardized forms. The key objective of appraisal is to provide employees with feedback on their performance provided by the line manager (Randell, 1994)
ReplyDeleteThank you for your comments Gihan. Agree with your view. The performance appraisals can help to encourage the supervisors to observe their employees more closely and do a better job of managing them (Oberg (1972).
DeleteVery well explained Dineth.
ReplyDeleteThe systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes.
Thank you for your comments ijaz. Agree with your view. appraisals help to encourage the supervisors to observe their employees more closely and do a better job of managing them (Oberg 1972).
DeleteHi Dineth agreed on statement. Madhavi Thakur ,(2020) said that the evaluation helps the line managers and HR people to design policies and programs for the progress of employees and business.
ReplyDeleteThank you for your comments Upeksha. Agree with your view. Evaluate employees and develop their competence, improve performance, and allocate rewards & benefits (Fletcher, 2001). This identified the purposes of performance appraisal (Grote (2002).
DeleteDineth, your post is well-explained, and I'd want to add to it. According to Rue and Byars, (2005), Performance evaluation is a method of determining and expressing how individuals execute their jobs, as well as developing a strategy for improving the process of fulfilling work duties.
ReplyDeleteThank you for your comments janakan. Agree with your view. performance appraisal can improve organizational decisions including reward allocation, promotions, layoffs and transfers. the performance appraisal can improve individual career decisions and decisions about where to focus one time and effort.
DeleteHi Dineth, Clearly line-up the details. Further performance appraisals are also considered as motivational tools due to the ability to help identify employees‘ strengthen and help capitalize on them through support (Sutton & Watson, 2013).At the same time, weaknesses are identified and measures put in place in form of supervisory support that is necessary in helping the employee to improve.
ReplyDeleteThank you for your comments Ganith. Agree with your view. Individual employees can take many decisions concerning their present and future roles in the organization (Murphy and Cleveland (1995). They must decide how they will develop future strengths and what sort of career goals they should pursue. Performance appraisal can provide an accurate, timely and detailed feedback to assist in the quality of these decisions.
DeleteThe benefits that you have mentioned can be achieved if managers provide opportunities to employees to realise and improve their full capacity and motivation (Saul, 1993). There should be a clear communication mechanism in place within organizations to readily respond to employees’ requests for resources to implement tasks assigned to them. Many public organizations that I have worked for did not recognize the performance appraisal seriously other than for annual salary increment of employees which is decided based on the job category.
ReplyDeleteSaul, P., 1993. Rethinking performance appraisal. Asia Pacific Journal of Human Resources, 30(3), pp.25-39.
Thank you for your comments Ravi. Agree with your view. The performance appraisals have five major parts are salary management, terminations, layoffs, promotions and identifying poor performance (Boswell & Boudreau, 2000). It’s not use for enable organizations to make decisions about the employees, but also to compare candidates on some type of objective basis (Brinkerhoff & Kanter).
DeleteHi Dineth , Well written article ,agreeing with your points I would like to add below as well. According to the Armstrong ( 2014) This process is expected to improve organizational performance generally by creating culture of performance which will effect to achieve high performance levels. Specifically effective performance management ensure the individual goals are aligning with organizational goals and strategies.
ReplyDeleteThank you for your comments Manoj. Agree with your view. performance appraisal including motivating employees, assessing employee potential, improving working relationships, assigning work more efficiently, and assisting in long-range planning (Thomas and Bretz (1994).
DeleteI agree with you; standard performance appraisal instrument increases the potential for consistency by ensuring that all similarly situated employees are evaluated on the same criteria. (Segal.2000)
ReplyDeleteThank you for your comments Surangi. Agree with your view. There are four ways in which performance appraisal can help organizations. performance appraisal can improve organizational 6 decisions including reward allocation, promotions, layoffs and transfers. the performance appraisal can improve individual career decisions and decisions about where to focus one time and effort. Individual employees can take many decisions concerning their present and future roles in the organization (Murphy and Cleveland (1995).
DeleteHey Dineth,Good Approcah to the subject,Further Gardner (2008) describes performance appraisal as the evaluation of an individual‘s work with the main aim of arriving at objective personnel decisions. It is also considered as the process of obtaining, analysing as well as recording information that revolves about the relative worth of the employee to the organisation (Armstrong, 2009). This is functioning through the formalised interaction between an organisation‘s supervisors and employees in which the former assess the performance of the latter. One of the main goals in this case is the identification of strengths and weaknesses that form the basis of recommending actions for improved employee performance (Gardner, 2008).
ReplyDeleteThank you for your comments jayasundara. Agree with your view. The Performance appraisal is variety of activities through which organizations seek to Evaluate employees and develop their competence, improve performance, and allocate rewards & benefits (Fletcher, 2001).
DeleteHi Dineth, Agreed with you, and adding to that, Performance appraisal proposed framework is based on six factors, which are training needs evaluation, coincidence with institutes, excite staff to be better, ability to compare, cost of method, and free of error, (Mostafa, J.,
ReplyDeleteAtieh, B., & Roozbeh, H. A., 2009).
Thank you for your comments atapstthu. Agree with your view. The performance appraisals have five major parts are salary management, terminations, layoffs, promotions and identifying poor performance (Boswell & Boudreau, 2000).
DeleteHi Dineth, personally, I am in agreement of the way you link PA to organizational performance. However, Armstrong (2014) points out that the researches so far have produced conflicting results when determining the link between organizational performance and PA.
ReplyDeleteThank you for your comments Divakar. Agree with your view. Evaluate employees and develop their competence, improve performance, and allocate rewards & benefits (Fletcher, 2001).
DeleteHi Dineth, I would like to add more to the content. The main goal of the performance appraisal in organizations is to improve employee performance (DeNisi and Pritchard, 2006). Another look of the performance appraisal is the most crucial issue in peroformance appraisal is delivering negative feedback to an employee (Ilgen and Davis, 2000). The managers were reluctant to give negative feedback. Employees find it very difficult to accept such feedback.
ReplyDeleteThank you for your comments Thiloka. Agree with your view. directed towards to increasing the capacity of the employees to be more productive, effective, efficient and satisfied in future. It covers job skills, career planning, employee motivation and effective coaching between mangers and subordinates in the organization. also its concerned with enhancing attitudes, experiences and skills that improve the effectiveness of an employees(Boswell & Bourdeau, 2002).
DeleteAgreed on the statements you made on benefits and drawbacks of having Employee performance Management Dineth, while adding some more to the article, The systematic procedure of a performance appraisal help the immediate supervisor to set training, policies and program and It helps to analyse the strength and weaknesses of the employees since the organization can design the job efficiently to the employees. It will also be helping in framing future development programs to gain a developed and productive employee where an organization must carry out a fair and good performance appraisal (Creamer and Winston,1999).
ReplyDeleteThank you for your comments shazna. Agree with your view. additional purposes as performance appraisal including motivating employees, assessing employee potential, improving working relationships, assigning work more efficiently, and assisting in long-range planning (Thomas and Bretz (1994).
Delete