Benefits of the Performance appraisal
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Most 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.
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.
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.
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.
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.
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.
DeleteFrom Udeni
ReplyDeleteVery interesting blog Vayanga. You have attractively described about the Performance appraisal and its impact to the employee and to the organization.
Performance 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.
DeleteThis comment has been removed by a blog administrator.
ReplyDeleteHi 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.
ReplyDelete