Performance
Appraisal and its Impact to the Employees and the Organization
Introduction
It
is identified that the human resource is one of the most valuable asset of an
organization (Kateřina et al, 2013). The overall performance of an organization
is almost depending upon the performance by its members (Toppo & Prusty,
2012). Therefore, the performance of the individual employees plays a major
role within the organization. The ‘Performance Evaluation’ or ‘Performance
appraisal’ are used to determine the levels of the employee within employee’s
scope. In addition to that it is identified that the reward decisions are
depend on the performance evaluation results of the employees (Kamphorst &
Swank,2012). The importance and the effectiveness of the performance appraisal
will be discussed for the organization.
Performance appraisal
Performance
appraisal is a tool which used by the organization to assess the performance of
an employee against the standards and the objectives which defined by the
organization. The process of performance appraisal will be helpful to improve
the performance of the employees as well as the organization by increasing the
productivity, quality and the attitudes of the employees towards the
organization (Samuel, 2013). It is recommended to do a performance evaluation
or a performance appraisal in every organization for the betterment of the
employees as well as the organization (Mishra, 2013). The performance appraisal
can be clearly identified as one of the tools that calculate the individual
overall contribution to the organization through an assessment (Azeez, 2017). The performance appraisal methods can be
different from one organization to another. Some organizations will use manual
methods such as marking the performance on papers and get it approved, and some
organizations will use ERP (Enterprise Resource Planning) systems to do the
performance appraisal in a digital manner.
The
performance appraisal can be categorized as two forms, formal and informal (Kateřina
et al). Informal procedure is where the superior monitors the employee during
the work process and formal procedure is where the organization follows a
systematic method. According to Rao (1985) the important components of a
performance appraisal are identified as key performance areas, self-appraisal,
performance analysis, performance ratings and counseling (Kolawole et al,
2013). In addition for these components according to Ali and Opatha (2008)
states that in an organization there are few dimensions considered in
performance appraisal. Those are objectives, policies, criteria and standards, appraisal
form and procedure, training of appraisers, feedback discussion interview, and
procedure for ensure accurate implementation. The formal performance appraisal
will be usually done in few different steps. The first step will be the
self-appraisal where the employee himself is giving the ratings. Then the
higher management will do a specific interview to measure the ratings of the
employees, and the performance appraisal ratings will be reviewed.
As
Hornqren (2002) express there should be a better relationship between the
organizational goals and the employees’ goals. The performance appraisal
process needs to be aligning with this relationship.
Figure
1 – Relationship between organizational goals and employees’ goals
(Source: Ali et al, 2012)
As
the above diagram displays the efforts by the individual employee,
organizational outputs, organizational goals and the rewards are linked with
the performance appraisal. As an example the performance appraisal process of a
leading telecommunication organization can be taken. Most of the modern
organizations are using ERP systems to do their performance appraisal process. Therefore,
with just few clicks an employee can see the overall performance appraisal
process and the results with the comments via the ERP system. According to the
organization circular No 06/2018 by the acting CEO the major steps which this
organization has mentioned for a performance appraisal can be listed as the
following image.
Figure
2 – Acting CEO circular No 06/2018
The
above plan is for a mid-year performance appraisal. According to the plan the
first step is for the self-evaluation. Then there will be an interview where
superior checks the performance levels of the subordinate in various
categories. Finally, the performance ratings will be updated on the ERP and the
employee can see all the comments and the results through the ERP system where
the performance appraisal process makes more transparent.
Benefits of the
Performance appraisal
The
performance appraisal creates a motivation within the employee to develop
themselves and to improve their performance (Akinbowale et al, 2013). In
addition to that point according to Akinbowale, Lourens and Jinabhai (2013),
they state that the performance appraisal can improve the quality of the
working life of the employees. According to Hudson (1992) the performance
appraisal can be a great tool to gain greater knowledge and to develop better
skills with positive attitudes.
According
to Paul, Abeguki, Hezekiah and JoyIfiavor (2014) the performance appraisal will
be helpful to identify the areas where the employees need to be trained. The
competency levels can be decided of each and every employee. Therefore the
management of the organization can arrange the training sessions, knowledge
sharing sessions for those employees with the data collected from the
performance appraisal results. As the
outcome of these well planned training sessions, the performance level of the
organization will be increased naturally.
Figure
3 – Outcomes and benefits of performance appraisals
(Source: Jabeen, 2011)
The
performance appraisal will be a strong factor to measure the personal decisions
of the employees. The outcome of the performance appraisal will represent
important strategic personal decisions which will help the management to get a
clear image about the employee (Venclová, 2013)
When
it comes for the performance appraisal of the newly promoted employees, the
process of performance appraisal will benefits both the employee as well as the
organization to capture the performance level and the areas where the employee
needs to develop in the new position (Kolawole et al, 2013). This positive
factor will be helpful for the management to take better decisions on employer
promotions in future aswell.
Weaknesses found
in Performance appraisal
Basically
the performance appraisal is used for the betterment of the organization, but
there can be drawbacks aswell. According to Samuel (2013) following problems
are identified in the process of performance appraisal.
·
Using ineffective forms-
This
happens when the performance appraisal is mainly targeted on the popularity or
the personality traits rather than focusing the job related activities (Daschler
and Ninemeier, cited in Samuel 2013).
·
Compare the employees-
This
is something that should not be done. The performance appraisal is based on
individual performances with respect to the organization and individual scope
as it explained. Therefore comparing one employee’s performance with another
employee could be lead to an unsuccessful performance appraisal (Samuel, 2013).
·
Performance appraisal can be affected by
the demographic effects. According to De Nisi and Murphy (2017) the performance
rating can be affected by the factors such as race, gender, or age. Further Bass and Turner (1973) have examined
the Black-White difference in performance ratings (DeNisi and Murphy, 2017).
This is another major weakness that can be found in non-systematic performance
appraisals. The outcome of such a performance appraisal will lead the
organization in to a wrong path.
·
Negative effect for the employee
motivation factor.
In
most organizations the reward scheme is based with the result of the
performance appraisal process. Therefore according to Toppo and Prusty (2012)
the mangers should not give negative judgments on employees as it could be a
reason to de-motivate the employees. In that point it is clearly identify that
this performance appraisal is somewhat a sensitive factor for the employee and
the process should be carried out in a systematic way with minimizing the
weaknesses.
Conclusion and
Recommendations
The
performance appraisal is identified as one of the best tools for the
organization to increase the performance of the each employee as well as the
whole organization. Most importantly the performance appraisal process needs to
be transparent, unless there can be more internal problems within the
organization.
As
it described above, the performance appraisal is one of the keys which defines
reward method or the reward criteria of the employee. Therefore it is clear
that the result of a single performance appraisal process might be heavily
affecting an employee for the employee’s motivation. An employee needs to have
the feeling that he/she is valuable for the organization. Hence, frequent
performance appraisals are preferred to measure outcomes.
The
performance improvements of the organization and the individual employees are
very critical in gaining a competitive advantage in the market (Samuel, 2013). Further,
for the statement made by Samuel (2013), in the modern world market, the
knowledge and the performance level plays a huge role. Therefore a proper
performance appraisal will be a key factor for the success of an organization.
Performance
appraisal is a key for the employee motivation as well. Therefore the
performance appraisal needs to be more transparent and it should be systematic.
The employee should have the capability to trace back his/her performance
evaluation process and to get an idea about the way the employee got the
performance level. If the employee is not happy about the performance appraisal
process and the awarded performance level, it will be a key factor to reduce
the motivation of the employee. Therefore if most of the employees were
de-motivated with the performance appraisal process, the final negative result
will be for the performance of the organization. Therefore it is highly
recommended to have a performance appraisal process which is transparent for
every employee.
References
Akinbowale, MA. Lourens, ME & Jinabhai,
DC 2013, 'Role of performance appraisal policy and its effects on employee
performance', European Journal of
Business and Social Sciences, vol. 2, no. 7, pp. 19-26.
Ali, MHM & Opatha, HHDNP 2008,
'Performance Appraisal System and Business Performance: An Empirical Study in
Sri Lankan Apparel Industry', Sri Lankan
Journal of Human Resource Management, vol. 2, no. 1, pp. 74-90.
Ali, SB. Mahdi, A & Malihe, J 2012, ‘The
Effect of Employees’ Performance Appraisal Procedure on their Intrinsic
Motivation’, International Journal of
Academic Research in Business and Social Sciences, vol. 2, no. 12, pp.
161-168.
Azeez, SA 2017, 'The impact of appraisal
system, supervisor support and motivation on employee retention: A review of
literature', International Journal of
Commerce and Management Research, vol. 3, no. 7, pp. 37-42.
Cintrón, R and Flaniken, F, ‘Performance
Appraisal: A Supervision or Leadership Tool?’, International Journal of Business and Social Science, vol . 2, no.
17, pp. 29-37.
DeNisi, AS & Murphy, KR 2017,
'Performance Appraisal and Performance Management:
100 Years of Progress?', Journal of Applied Psychology, vol. 102, no. 3, pp. 421-433.
Hudson, H 1992, The perfect appraisal, Century Business, London.
Jabeen, M 2011, Impact of Performance
Appraisal on Employees Motivation, European
Journal of Business and Management, vol 3, no.4, pp. 197-204.
Kamphorst, JJA & Swank, OH 2012, 'The
Role of Performance Appraisals in Motivating Employees', Tinbergen Institute Discussion Paper, vol. 1, no. 1, pp. 1-25.
Kateřina, V. Andrea, S & Gabriela. K
2013, ‘Identification of Employee Performance Appraisal Methods in Agricultural
Organizations’, Journal of
Competitiveness, vol. 5, no. 2, pp. 20-36.
Kolawole. Olabode, T. Komalafe, IT, Adebayo,
AA & Adegoroye, AA 2013, 'Appraisal system: A tool for performance in
selected organizations in Nigeria', International
Journal of Sociology and Anthropology, vol. 5, no. 7, pp. 249-261.
Mishra, L 2013, 'A Research Study on Employee
Appraisal System Case of Hong Kong and Shanghai Banking Corporation (Hsbc
Bank)', International Journal of Business
and Management Invention, vol. 2, no. 2, pp. 60-67.
Paul, SO. Abeguki, OOE. Hezekiah, F &
JoyIfiavor, D 2014, 'Modelling the relationship between performance appraisal
and organizational productivity in Nigerian public sector, International Journal of Research in Management, vol. 6, no. 4, pp.
59-74.
Samuel, B 2013, 'The origin, concept and
value of performance appraisal, International
Journal of Economics, Commerce and Management, vol. 1, no. 2, pp. 1-17.
Toppo, L & Prusty, T 2012, 'From
Performance Appraisal to Performance Management', IOSR Journal of Business and Management (IOSRJBM), vol. 3, no. 5,
pp. 1-6.
Venclová, K. Königová, M. Fejfar, J 2013,
'Current state of the employee performance appraisal system in agricultural organizations
in the Czech Republic', Acta
Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, vol. 61,
No. 4, pp. 1183–1189.
This comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeletePerformance appraisals is an important factor to any organization. The goal is to gather employee’s strengths and weaknesses and gather feedback from multiple sources. By using the above methods, the organization will have balance, as the judgement will be fair and accurate. The goal is to foster communication between managers and employees. Always “Lead with the Positive”. According to Richard (2004) People are anxious about performance appraisal meetings. By creating a tone of partnership from the very beginning will be easy. Start by setting the person at ease: don’t let him or her feel like a defendant on trial. The annual appraisal should be a positive event, even when improvement is required.
ReplyDeleteThank you commenting Crystal. Yes I agree with you. The judgments need to be fair and accurate. In addition in here according to Samuel (2013), the performance appraisal should not compare an employee with another employee.
DeleteIt is true that there should be a mechanism of getting the feedback's of the employees on their performance. Anyhow performance appraisals system is deviating with the introduction of Performance Management which consist of a flexible & a Joint Process with Continuous Review which focus on values and behaviors by moving away from the Bureaucratic nature. This will make sure to have supportive managers who coach and focus on future. (Armstrong, 2006)
ReplyDeleteThank you Charith for your thought. In here I like to take the concept of training and development which based with the performance appraisal. It is also something like a feedback for the employee. According to Paul et al (2014), they have also stated that the performance appraisal is a better method to select the areas where employees need to be trained.
DeletePerformance appraisal is considered as a tool of evaluating performance level of employees against a set of requirements which links with the vision of the organization. According to Purcell and Hutchinson (2007) effectiveness of performance appraisal depends on the leadership behavior in the organization. Exchange relationship between managers (who perform the evaluation) and their employees strongly affects to the reaction of employees to performance appraisal.
ReplyDeleteThank you Samanthi, yes I agree with your point. The effectiveness is directly depends with the leadership behaviors. In here the leaders should not compare an employee with another employee (Samuel, 2013)
DeleteThis comment has been removed by the author.
ReplyDeleteMost of organizations conducted to informal and formal performance evaluation practices to evaluate employee and performing objective performance evaluation practice progressively prevalent in the current times. It evaluate of an individual's work with the main goal of personnel decisions. Performance evaluation takes place through a planed interaction between an organization's managers and employees in which the former assess the performance of the given period. One of the main goal in performance evaluation is the identification of strengths and weaknesses of employees. That is the basis of recommending actions for improved employee performance (Gardner, 2008).
ReplyDeleteIt's true Gayanee, but what I believe is that for a fair performance appraisal, it's always better to go for a formal performance appraisal. According to DeNisi and Murphy (2017) performance ratings can be affected by the factors such as age, gender, skin color. Therefore I always prefer a formal performance appraisal.
DeleteThis comment has been removed by the author.
ReplyDeleteVayaga, as you mentioned in above findings it is confirmed that the performance management plays a key role in an organisation that helps to monitor the performance of the employees through their effectiveness of the workforce. According to (Armstrong, 2014) The aim is to develop the capacity of people to meet and exceed expectations and to achieve their full potential to the benefit of themselves and the organization. A further aim is to clarify how individuals are expected to contribute to the achievement.
ReplyDeleteLasitha, for your comment also I like to take the concept of training and development which based with the performance appraisal. To increase the effectiveness training sessions need to be provided for the employees, and according to Pau et al(2014), performance appraisals will help the management to decide the areas where employees need to be trained. It will helpful to increase the effectiveness.
DeleteVayanga,in my opinion why employees loose trust on performance management system is due to the lack of fairness.The performance management to be effective, it must be perceived to be fair by the employees. If not the system may always be looked upon with suspicion or as a wasteful exercise. A single item scale has been used to measure the perceived fairness in the performance management system, as suggested by Harrington & Lee (2014). It is “My performance appraisal is a fair reflection of my performance.”(Harrington & Lee, 2014).
ReplyDeleteYes I totally agree with you Akila. According to Denisi and Murphy (2017), the performance ratings can be changed with the factors like age, gender, skin color. Therefore I highly agree with you that the performance appraisal should be a formal systematic one, since it has to be fair all the time.
DeleteIn current context the performance appraisal plays a vital role in recognize and reward employees. However due to many different criteria each organization applies the fair judgment do not occurs in many instances. Employee satisfaction with performance appraisal plays a large role in the perceived effectiveness of the process. We examined the joint effects of feedback sign (positive or negative) and three goal orientation dimensions (learning, performance-prove, performance-avoid) on performance appraisal satisfaction. Results revealed the negative relationship between negative feedback and performance appraisal satisfaction was stronger for those higher in performance-prove, performance-avoid, and learning goal orientation(Satoris,2013).
ReplyDeleteThank you Shiran for your thought. Yes performance appraisal is a major task which decides the rewards for the employees. According to Kamphorst & Swank (2012) also, they state that the reward decisions are depend on the performance evaluation results of the employees
DeletePerformance appraisal has a big importance to either private or public sector organizations and an effectively performance appraisal system does offers great help for either private or public sector organizations to achieve strategic goals. However, since the complicated relationship within the organizations and the complications in establishing well-designed appraisal system, performance appraisal cannot always be effective and useful as we expected it. Hence much planning and proper implementation is necessary for a successful performance appraisal, which benefits both the employer and employee.( Crawford, 2003).
ReplyDeleteAjantha, yes it is. We should be able to get the maximum from the performance appraisal. According to Akinbowale et al (2013), the performance appraisal will be helpful to motivate the employees. In this condition as you said the performance appraisal will be helpful to the employer as well as the employee.
DeleteIn any organization its employees should be graded from the best to the worst for the purpose of mainly, compensation, rewards, training needs, and disciplinary action. And "performance appraisal" is on of the main tools that successfully asses and evaluates an organizations employees' , provided the tool is applied in an ethical and a transparent justifiable manner. the blog discuses the topic in a comprehensive manner, relevant to its topic.
ReplyDeleteFurther,Nickols (2007,p-13) suggests that “the typical performance appraisal system devours staggering amounts of time and energy, depresses and demotivates people, destroys trust and teamwork and, adding insult to injury, it delivers little demonstrable value at great cost”. Therefore, it is vital to implement an appraisal system which does not challenge other working individuals to Couse de motivation due to non transparency, biasness and stereo typing. where the results will be devastating.
Hi Chaminda, thank you for your thought. The reward decisions are mainly depend with the performance appraisal (Kamphorst & Swank,2012). I accept that point. And further as you said it is important not to demotivate employees with the negative performance appraisal results.
DeleteVayanga, As per Kane and Lawler(2009) performance appraisal systems covers three main
ReplyDeletefunctional areas those are administrative, informative, and motivational. But currently organizations are consider only the administrative aspect because they just want some basis to finalized Increment and Bonus percentages at the year end. because of this present organizations have missed Following valuable two benefits that you have mentioned
*performance appraisal creates a motivation
*performance appraisal can improve the quality of the working life of the employees.
Yes true Suresh. In some organizations it changes with the organization culture as well. But according to Akinbowale et al (2013) as well it is important motivate employees via the performance appraisal.
DeleteVayanga, it’s an Interesting blog to read on Performance Appraisal system in an organization as you have very well laid out in your blog. Performance Appraisal process evaluate an employees’ strength and weakness easily.
ReplyDelete(Lyster and Arthur, 2006) further mentions, if an effective performance job to happen an organization cannot simply handout forms and expect managers to create an outstanding analysis of employee performance. It is a process that requires planning, training and suitable implementation and execution. The performance review must also incorporate review and analysis of whether the system an organization adopts works effectively.
I agree with you Ruwini, yes the performance appraisal should be a systematic process. It should not be just a set of forms. According to Mishra (2013), performance appraisals are for the betterment of the employer as well as the employee. Therefore yes, what you have mentioned is correct. To achieve the betterment the process cannot be just describes in a set of forms. It should be more systematic.
DeleteIt is no doubt agree that the performance appraisal system is one of the key tools in HRM to enhance employee motivation and in turn, will benefit the employer as well in achieving KPIs. However it is utmost important to pick the most appropriate method, in right context as it involves time, money and also heavily reliant on the skills of appraisers. In order to minimize the drawbacks and to avoid any disappointments, Singh (2015) reiterate the fact that organizations should at least select two performance appraisal methods; one past oriented method & one future oriented method. This is mainly due to the complexity of multi-tasking & multi-department work in today’s organizational contexts.
ReplyDeleteThank you for commenting Amal. I agree with you. The performance appraisal should not cause any disappointment for the employees. The reason is that, if the employees got disappointed the overall productivity will be affected badly. If the management tries to compare one employee to another, it will cause a disappointment sometimes. The reason is that the employees are working for a common goal, and employees don’t like to get compared when achieving a common goal. According to Samuel (2013), he also states that comparing employees in a performance appraisal is not a good practice.
DeletePerformance appraisal is essential in development of employee and growth of the organization. Most multinational companies do quarterly evaluations to measure employee standards and where they should directed to. This is mainly based on their KPIs. Appraisals will show whether the employee in the right part or whether they need more training r development. As most multinational do all the employees are given a chance to do appraisals for whom they report to. This show the management which level have gaps to fulfill.
ReplyDeleteThank you for your comment Dharshika. Yes I agree with you. Performance appraisal is a process where the management get an idea about the areas where the employees need to be trained. According to Paul, Abeguki, Hezekiah and JoyIfiavor (2014) the performance appraisal will be helpful to identify the areas where the employees need to be trained.
DeleteVayanga, you have managed to critically analyse on Performance Appraisals.Performance appraisal is credited with encouraging employee loyalty, fostering teamwork, impacting other Human Resource functions positively and also positively involved in employee motivation. Owing to the role these factors play in attaining organizational goals, many organizations invest in Performance appraisals (Agyare1, et al.2016,p.282).
ReplyDeleteThank you for commenting Bernadine. As you have mentioned too, employee motivation is one of the major outcomes which can be achieved through a better performance appraisal process. The performance appraisal creates a motivation within the employee to develop themselves and to improve their performance (Akinbowale et al, 2013). When the employees are motivated, the productivity will also get increased.
DeleteHi Vayanga, you have sufficiently covered the topic of performance appraisal and its impact to the employees and the organization. As you have highlighted in your blog, performance appraisal is a major component of any performance management system and effective performance management includes not only performance appraisals but also activities such as reward for the performance, training, succession planning (Banks and May, 1999; Bulger, 1995).Hence, according to Abraham et al.(2001), it is evident that all the organizations are not appraising managerial competencies as part of their performance appraisal which is another important aspect for any organization to consider in their performance appraisal processes
ReplyDeleteThank you for commenting Dinuka. Yes, if a performance appraisal is carried out, a reward system also should be there to motivate the employees. Performance evaluation should not be just another test. It should give a results for the organization and the employee. In here according to Toppo and Prusty (2012) the mangers should not give negative judgments or the negative rewards on employees as it could be a reason to de-motivate the employees. Therefore it is important to handle the performance appraisal results in a responsible manner.
DeleteWell done Vayanga, Its amazing blog and you have covered most of the subject with justified summery. Mean while I like to add that this performance appraisal process done by supervisors which is the informal method could be bias one and some supervisors may not have the ability to supervise followers and grab their talent or may be there favoritism. I found another theory to add your blog and its "Implicit Person Theory" and my proposal supported by follows,
ReplyDeleteperformance appraisals need to be based on up-to-date, unbiased information about employee performance in order to be perceived as procedurally just (Latham & Mann, 2006).
Thank you for commenting Ruwanga. As you have mentioned too the performance appraisal process should not be biased for few employees and favoritism should not be there. According to De Nisi and Murphy (2017) the performance rating can be affected by the factors such as race, gender, or age. Further Bass and Turner (1973) have examined the Black-White difference in performance ratings (DeNisi and Murphy, 2017). Therefore I too agree with you. These kinds of things will be results a failed performance appraisal process.
DeleteHi Vayanga your blog is clearly defines how performance appraisal impact on developing employees commitment towards the work. According to Rao (1985) the important components of a performance appraisal are identified as key performance areas, self-appraisal, performance analysis, performance ratings and counseling (Kolawole et al, 2013). Therefore it is comfirmed that performance apprisal is vital to measure the effectiveness of the employee and for effective performance management.
ReplyDeleteThank you commenting Mohan. Yes indeed, performance appraisal is really important to measure the effectiveness of the employee. Further Toppo & Prusty (2012) hasn mentioned that the overall performance of the organization is highly depending upon the performance by its members. Therefore when it comes for the individual effectiveness, it will directly linked with the organizational effectiveness aswell.
DeleteHi Vayanga, I have come across some of the failures of performance appraisal that can be attributed to ambiguous performance standards, rater bias, lengthy process of form fill-ing and documenting, and wrong selection of performance criteria. Also the performance appraisal process becomes a source of conflict for both the managers and the employees, often for its annual frequency.(Bhattacharyya, 2011). How can we over come this?
ReplyDeleteThank you for commenting Sheriff. I like to take the point which you have mentioned about the form filling and lengthy processes. When the performance appraisal is mainly targeted on the popularity or the personality traits rather than focusing the job related activities (Daschler and Ninemeier, cited in Samuel 2013) the overall performance appraisal will be failed.
DeleteHi , Vayanga , It is clearly that the HRM makes a great contribution for either private or public sector organizations to achieve organization goals, therefore, as an important function of HRM, the performance appraisal has significant importance in organizations. If there is no performance appraisal system, an organization can hardly have a clear understanding of its current situation, therefore it cannot get the direction and goals for improvement for future, the situation of the organization will be dangerous. If the performance appraisal system is full of deviation or even error, it can possibly lead the organization into a wrong direction of resource inputting, thus the organization will lose its long-term competitiveness. On the contrary, an effective performance appraisal system can ensure resources of the organization invested into the most critical processes, which can improve competitive advantage of organization.
ReplyDeleteThank you Sumedha for commenting on my blog. As you have mentioned the importance of having a performance appraisal process, I like to add something on it. I too believe that there should be a performance appraisal process within the organization. According to Paul, Abeguki, Hezekiah and JoyIfiavor (2014) the performance appraisal will be helpful to identify the areas where the employees need to be trained. This will helpful to increase the productivity of the organization.
DeleteVery interesting blog Vayanga. You have attractively described about the Performance appraisal and its impact to the employee and to the organization.
ReplyDeletePerformance Appraisal is a process of identifying, observing, measuring and development human performance in organizations and has attracted the attention of both academicians and practitioners. The process is also viewed as making an important contribution to effective human resource management as it is closely interlinked to organizational performance (Erdogan, 2002).
Performance appraisal is a very important management tool that helps management in its drive towards optimizing performance, primarily individual performance and therefore, organizations performance now and in the future.
I would like to apply in this theory to the banking sector as well, eschewing conventional performance appraisal systems, Seylan Bank applies a key performance-indicator method to set targets and objectively manage the performance of employees. The method is based on a well-developed wed based performance appraisal model that facilitate quick appraisal and target-setting for all employees (Seylan Bank Annual Report, 2017).
Thank you Udeni for you comment. As you said, performance appraisal is a process which helps to increase the individual performances. According to Paul, Abeguki, Hezekiah and JoyIfiavor (2014) the performance appraisal will be helpful to identify the areas where the employees need to be trained. The competency levels can be decided of each and every employee. Therefore indirectly it will helpful to increase the performance level of the organization.
DeleteIt is one of the hot topics but one that is not easy to be discussed, however, you have given it with great clarity. Very well done. It is the duty and role of the HRM/HRD to ensure that the employees are appraised that raise the level of confidence and belief of the employees in the employer/organization in performing their job efficiently and effectively knowing that they are contributions will not go unnoticed, they would be aptly rewarded and taken care of ((Eisenberger et., al 1986)
ReplyDeleteThank you Saliya for the comment. When it comes to the confidence level of an employee, it comes with the employee motivation aswell. The performance appraisal creates a motivation within the employee to develop themselves and to improve their performance (Akinbowale et al, 2013). Therefore the efficiency level will be increased with the performance appraisal results.
DeleteHI Vayanga
ReplyDeleteAttractive interpretation about Performance Appraisal which is the systematic evaluation of the show of employees and to understand the abilities of a person for further intensification and improvement.
Appraisal system is directly impact to the employee by way of a self assessment ,measurement of own effectiveness and efficiency is in line with the organization standards and vision or any improvement needed Cappelli (2008: 196)
Thank you for your comment Shantha. Yes the performance appraisal system directly impact to the employee. The employee will get motivated to get a good result and to get a better reward with the result of the performance appraisal. According to Kamphorst & Swank (2012) it is identified that the reward decisions are depend on the performance evaluation results of the employees.
DeleteThis comment has been removed by the author.
ReplyDeleteHi Vayanga, well prepared blog which gives clear understanding to the Reader on Performance Appraisal. As you mentioned above" the overall performance of any organization depends on the performance of their employees " it is clear that the people or employees are the most valuable asset for the organization. As a kind of a motivational tool performance appraisal is doing to identify the productivity and to increase quality and to encourage employees towards firm's goals.Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a person’s efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future(Hossain,2014).
ReplyDeleteThank you commenting Maheshika. Yes, performance appraisal is one of the major motivational tools for the organization. I agree with you that. Further according to Paul, Abeguki, Hezekiah and JoyIfiavor (2014) the performance appraisal will be helpful to identify the areas where the employees need to be trained. Therefore with these kind of trainings, the employees will get motivated to do their jobs.
DeleteHi ,Vayanga . Well explained Blog on Performance Appraisal [PA] and its Impact to the Employees and the Organization . Most of the time Performance Appraisals do not provide a balance assessment of the particular employee relating to the individual performances and organizational performances ,which justifies with the weakness of PA in your blog.Performance appraisal has been discredited because too often it has been operated as a top-down and largely bureaucratic system owned by the HR department rather than by line managers. According to Townley (1989) , Performance Appraisal is solely a means of exercising managerial control. . Performance appraisal tended to be backward looking, concentrating on what had gone wrong, rather than looking forward to future development needs. Performance appraisal schemes existed in isolation. There was little or no link between them and the needs of the business. Line managers have frequently rejected performance appraisal schemes as being time-consuming and irrelevant(Armstrong, 2006) . Performance management is a continuous and much wider, more comprehensive and more natural process of management that clarifies mutual expectations, emphasizes the support role of managers who are expected to act as coaches rather than judges, and focuses on the future.
ReplyDeleteThank you Kasun for your comment. I agree with your comment regarding that the performance appraisal needs to be a continuous function. Periodically performance appraisal processes needs to be functioned since it is the best method to face the updating industry. The process of performance appraisal will be helpful to improve the performance of the employees as well as the organization by increasing the productivity, quality and the attitudes of the employees towards the organization (Samuel, 2013). If the performance appraisal in conducting few times per year, the management will be able to get the maximum productivity, quality and better attitudes from the employees.
Delete@Vayanga Rajakaruna Many companies have concentrated on implementing “evaluative & assessing“ tools such as Performance Appraisals, which falls under Performance Management Systems. Therefore, the non-existence of continuous feedback for employees on conventional appraisals can be eliminated by Informal feedback that can play a significant role in development & overall performance for the organization (Aguinis 2013).
ReplyDeleteThank you for the comment Kasun. Yes for the overall performance of the organization, the individual performance is much important. According to Toppo & Prusty (2012) the overall performance of an organization is almost depending upon the performance by its members. Therefore continues feedback is always critical for an organization.
Delete"It is not readily apparent how some performance appraisal research issues inform performance appraisal practice. Because performance appraisal is an applied topic, it is useful to periodically consider the current state of performance research and its relation to performance appraisal practice" (Robert D and Bretz Jr,1992)
ReplyDeleteThank you for commenting Dilshani. Yes performance appraisal needs to be a periodic practice. Since the skills and attitudes are changing rapidly, the performance appraisals need to be conduct periodically. According to Paul, Abeguki, Hezekiah and JoyIfiavor (2014) the performance appraisal will be helpful to identify the areas where the employees need to be trained. Therefore periodical performance appraisal will be helpful to find those areas.
DeleteOrganizations are run and steered by people. It is through people that goals are set and objectives are
ReplyDeleterealized. The performance of an organization is thus dependent upon the sum total of performance of its members. The success of an organization will therefore depend on its ability to measure accurately the performance of its members and use it objectively to optimize them as a vital resource (Biswajeet 2009).
I agree with you Tharindu.. Yes the organizations are purely running with the effort by the employees. Therefore according to Akinbowale et al (2013), the employees need to trained. That is the best way to make your statement correct. Unless without trained employees the organization will go in a wrong way.
Delete