Armstrong and Taylor (2020) define performance appraisal as the systematic evaluation of an employee's output and work performance in respect to established benchmarks and company objectives.
Setting goals, assessing performance, identifying areas for improvement and making decisions regarding hiring, compensation and promotions are the main goals.
Needs and Objectives of PA
• Provide feedback about employees.
• Provide information. ( future talents, promotion, transfer, Training )
• Diagnose the S & W of individuals.
• Provide coaching, counseling, career planning to subordinates.
• Develop positive relation (Employer and Employee) and reduce grievance.
• Facilitates research in HR management.
• Provide financial benefits
• Identify the potential areas (T&D)
Lets Explain few of them.
1)Diagnose the S & W of individuals.
Strengths: Recognize and highlight an employee's strengths. An individual with exceptional customer service abilities, for instance, can receive recognition for their ability to successfully address challenging client inquiries.
Weaknesses: Point out areas that want improvement. For example, if a worker has trouble meeting deadlines, it's critical to talk about solutions and find a solution.
2)Develop Positive Relations and Reduce Grievance
Positive Relations: Encourage a courteous and encouraging work atmosphere.
For example, having regular one-on-one sessions can help build trust and resolve any problems before they get worse.
Reduce Grievance: Resolve employee concerns and complaints in a timely and equitable manner to prevent unhappiness.
For example, if a worker has a complaint about their workload, it should be resolved through frank discussion.
3)Identify Potential Areas for Training and Development (T&D)
Training and Development: Determine what areas workers may improve their professions and abilities by receiving more training. Setting up appropriate training, for instance, can help if a worker is eager to learn new software that relates to their position.
Arguments for Performance Appraisal Being Essential:
Feedback and development
Employees receive organized feedback through performance reviews, which is essential for their professional growth. DeNisi and Williams (2018) suggest that consistent feedback fosters an understanding of an employee's strengths and opportunities for growth, ultimately leading to improved job performance and career advancement.
Goal Setting and Alignment
Setting specific performance goals and matching them to organizational objectives is made easier with the aid of appraisals. This alignment guarantees that each person's contributions support the organization's overarching objectives. According to a study by Locke and Latham (2019), by outlining expectations and tracking results, goal-setting through performance reviews can boost motivation and productivity.
Recognition and Rewards
Evaluations of performance are essential for identifying and rewarding top performers. Top performers may be found and merit-based pay and promotions can be supported with the aid of efficient appraisal systems. According to research by Gerhart and Rynes (2003), keeping talent and inspiring employees both depend on fair and transparent performance reviews.
Arguments Against Performance Appraisal Being Essential:
Bias and Inaccuracy
Performance reviews may contain biases and be subjective, which could result in judgments that are not accurate. Biases including the halo effect, leniency, and recency, according to Pulakos et al. (2019), might skew the assessment process and impair its efficacy and fairness.
Stress and Demotivation
Employee tension and worry throughout the appraisal process may result in a decline in motivation and job satisfaction.
Administrative Burden
Conducting performance reviews can take a lot of time and resources. Other crucial HR initiatives and operational priorities may suffer as a result of this administrative load.
Conclusion
The implementation and administration of performance assessments have a significant impact on their efficacy, even if they might be crucial for obtaining feedback, coordinating objectives, and rewarding staff efforts. Although well-conducted appraisals have the potential to improve both organizational performance and personnel development, they can also result in biases, stress, and inefficiencies if not done correctly. Thus, it is imperative for businesses to endeavor towards instituting equitable, lucid, and productive performance appraisal mechanisms, guaranteeing that they foster employee development and corporate prosperity.
References
Armstrong, M., & Taylor, S. (2020). Armstrong's Handbook of Human Resource Management Practice. Kogan Page. Available at: https://www.amazon.com/Armstrongs-Handbook-Resource-Management-Practice/dp/178966103X
Aguinis, H. (2013). Performance Management. Pearson Education. Available at: https://www.homeworkforyou.com/static_media/uploadedfiles/Performance%20Management%20(3rd%20Edition)%20-%20Herman%20Aguinis.pdf
Kluger, A. N., & DeNisi, A. (1996). The effects of feedback interventions on performance: A historical review, a meta-analysis, and a preliminary feedback intervention theory. Psychological Bulletin, 119(2), 254-284.
Great blog! You have explained the importance of performance appraisals very well. But could you help me by giving an idea how a employer can address an employee's weakness in meeting deadlines?
Performance appraisal is essential for evaluating employee performance, identifying strengths and areas for improvement, and guiding development. It boosts motivation and productivity by recognizing achievements and setting clear expectations. Appraisals ensure fair compensation, support career growth, and align individual goals with organizational objectives, driving overall business success. good one.
Great blog as it has effectively explained the concept of Performance Appraisal, its objectives, and both the benefits and challenges associated with it.
Which of the two approaches is better??? The answer is….it depends! Let’s see how……. The “Hard” approach to HR might be expected to result in a more cost-effective workforce where decision making is quicker and focused on senior managers. However, such an approach pays relatively little attention to the needs of employees and a business adopting a genuinely “hard” approach might expect to suffer from higher absenteeism and staff turnover and less successful recruitment. The “soft” approach will certainly appeal to the “touchy-feely” amongst us who like to see people being treated nicely! And also, can make a good business case for an approach which rewards employee performance and motivate staff more effectively. How ever the danger of taking too “soft “an approach is that when all the employee benefits are added up, the cost of the work force leaves a business at a competitive disadvantage. Example fo...
Great blog! You have explained the importance of performance appraisals very well. But could you help me by giving an idea how a employer can address an employee's weakness in meeting deadlines?
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