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.

Reference

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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

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Mohrman, A. M., Resnick-West, S. M., & Lawler, E. E. (1989). Designing performance

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nonacademic staff at Atlantic Baptist College.

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Oberg, W. (1972). Make performance appraisal relevant. Harvard Business Review

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