Advantages of Performance Appraisal System
Discuss about the International Journal Of Public Sector Management.
Performance review refers to the evaluation of individual work performance to obtain objective personnel decisions. It can also be described as the process of analyzing, obtaining and recording information on the value of work done by an employee (DeNisi & Murphy, 2017). The appraisal system is the platform for supervisors and employees to interact and evaluate the strengths and weaknesses of the employee and plan of the way to improve the future performance. Organizations use performance appraisal to manage the employee’s performances (Armstrong and Baron, 2010).
Organizations use different types of appraisal based on their requirements to benefit from the appraisal system (Appelbaum and Nur, 2011). The performance appraisal is advantageous to both the employer and employee of an organization. The employees benefit by learning and understanding their key strengths and weaknesses, while the employers get to understand the ways to better the performance of the employees. A performance appraisal main goal is to manage the Performance of the organization.
The evaluation helps determine how well the employees have performed and determines reasons for poor performance and determine areas of development needed by the employees to achieve their career goals. After the process completion of the process, the goals for the next performance appraisals are set, and the cycle continues.The sales representative manipulates the appraisal system and only schedule for the review during their biggest wins and the managers are in happy mood hence generalising their performance and attaining high marks during review. The sales team always time focus on timing the reviews. It has an impact on the management gauging the performance of the employee over a period of time as the evaluation will only be based on the current performance. The review will not cover the previous performances of the employee as the current performance will overshadow the poor performance in the previous months.
Organisations use the performance appraisal system to identify the needs of their employees and use the information to plan the training needed. It identifies the specific areas where the employees need training and development(Ivancevich, 2009).. The appraisal identifies the deficiencies affecting performance, and the organization finds ways to address the problem by organizing training programs. The main aim of training and development is to develop the individual strengths and weaknesses of the organization (DeVries, Morrison and Gerlach, 2011). In the case where the employees manipulates by ensuring the review is done of the time when they have performed well or have initiated new projects, the appraisal will not be effective and the organization will fail to determine areas of correction needed.
Manipulating the Appraisal System
The use of limited time schedule is also used by the sales executives to manipulate the appraisal system. Time is critical and most managers prefer emphasising on the positive aspects of the performance. It is advantageous to the employees as they find a way out and shortening the review period where the managers do not have a lot of time to exhaust all the performance against the job description. The limited time also make employees appear dedicated to their work and is seen as a positive attribute to their work. This aspect has an impact on the performance appraisal system as data collected is used to assist employees to develop their career plans. The employee set their goals and identifies ways of achieving them. The organization develops the employees and ensures the qualification and right experiences required are available(Armstrong and Baron, 2010). The organization determines this through performance appraisal. A well-designed appraisal system can capture all the aspects of career planning and development. When all the data is not captured during appraisal due to lack of time, the it has an impact on the overall organization performance and some skills required might not be available leading to failure in performing specific tasks.
Manipulation of the appraisal may not help determine the potential of the employees (Kim & Rubianty, 2011). The management assesses the employee potentiality through reviews over a period of time. The review should be based on previous performance. It is noted that the past behavior may predict the future behaviors in some jobs and sometimes past performance does not reflect on the future performance (Heslin & VandeWalle, 2011). For example, a good salesperson might not make a good sales manager. All qualities of an employee should be assessed during the appraisal and ignoring other aspects may lead to the promotion of a not worthy employee. A well-established appraisal system captures all these aspect.
Managers do not like to be seen as failures and the performance of their team members affects their performance. Focusing on the positive aspects of the performance only is also advantageous to them as they would find reasons to their shortcomings during their own appraisals. Managers like to be positively praised and indicating that they do have good managerial skills is a bonus to the employee. The manager would most likely do a positive feedback and avoid the negative areas of performance and these results in high ratings during reviews (Farndale & Kelliher, 2013). The organisation uses the ratings as a way to reward employees and the manipulation of the process leads to wrong employees getting promotions and increase in compensation. Performance review is used for compensation programs within the organization. It provides a basis for adjustment of the pay (Gupta & Kumar 2013). Those who perform well are rewarded with an increase in pay as a way of motivation and accomplishing the objectives of the organization. When the review is only based on the positive aspects of the performance, the organization rewards the employees who do not deserve it. A firm designs its organization performance appraisal system and rewards the most productive worker and teams. A well-designed appraisal system is based on a long period and not only the positive aspects of performance ( Kondrasuk, 2012). The most productive workers over the set period and have achieved their targets get a reward or compensation for the work well done.
Designing an Effective Appraisal System
Appraisal is termed by the employees as a feel good moments and the employees strive to avoid conflict of any manner with the manager to ensure the mood is happy during the review. The managers avoid negative feedback and only provide positive information to the organization. The data collected during the appraisal is used to identify who can be promoted to management level and if there is sufficient workforce in the organization (Kim, 2016). The human resource plans on how to fill the gaps identified during the appraisal. Evaluation of performance is used to rate and predict the performance of the job applicants. A successful employee can be identified through the performance appraisal system. If the data collected is standard, it helps recruit the right candidate for an open position (DeVries, Morrison and Gerlach, 2011).
The performance appraisal data is also used for the improvement of the internal employee relations. It includes the promotions, termination of contracts, transfers, demotion, and layoffs of employees. The data is used to determine if the performance level is unacceptable and termination or layoff may be done at that point. Also, the data can be used to determine the skills and behaviours of the employee and if they can handle a much higher position (Bowman, 2010). Collection of incorrect data during the reviews may create chaos in the organization as the right behaviours and skills are not available. The employees might lack skills on how to relate with other members of the organization and cause disputes leading to poor work performances.
Improving the individual, teams and the organization’s performance is the main objective of the performance appraisal. It also assists in the administrative decision making processes such as pay increases, promotions, layoffs, transfers and terminations when necessary Kim & Rubianty, 2011). Appraisal systems possess certain characteristics as there is no perfect system. These characteristics seek to achieve an accurate assessment of performance and not biased. The plan should provide feedback to the employees on how they perform and what the organization think of them.
Job related criteriais the essential criterion needed during the employee appraisal. The guidelines during selection are clear, and evaluation determined through the job analysis. Other subjective factors such loyalty, avoidance of conflict with the managers and appraisers, cooperation and initiatives should not be used during the appraisal system if not clear in the job description. It enables the appraisal process to be effective.
Using Performance Appraisal Data
Standardisation is where the same evaluation instrument should be used for all the employees of the organization in the same level. The appraisals should cover similar periods of time and feedbacks should be provided to all the employees. All the feedbacks should be documented, and employees should sign. It helps against biases and evaluation is based on the overall performance of a given time and not just the period when the appraisals are taking place.
Due process in appraisal system is important as it allows employees and the organization to achieve accurate results. An employee can appeal appraisal results that he or she feels is unfair. The organization should have procedures in where the employees can pursue their grievances and having them addressed accordingly.
The performance expectations should be communicated to the employees before the appraisal period. The employees have to know what they are measured against. It enables the employees to evaluate themselves and improve where necessary as they perform their duties before the appraisals. The appraisals have to be based on the set performance expectations.
A good appraisal system provides continuous open communication to the employees. The supervisors should provide desired feedback to employees on a continuous basis. The feedback helps coach and direct employees to grow and improve their performances. The managers should perform a continuous review to ensure that there is consistency in performance and development and training conducted where needed. The continuous feedback provides useful and effective appraisals.
The people who conduct appraisals should be trained on how to conduct effective evaluation process and avoid biases and conflicts. The appraisal should be consistent, accurate and objectives stated clearly.
Halo error refers to when performance appraiser generalizes one positive occurrence to all aspects of performance which results in a higher valuation. The horn error occurs when the appraiser generalizes a negative incident to the performance of the employee affecting all aspects of their work. Trained appraisers can be used to avoid this biases and the happy mood effect employees use during review (Sillup and Klimberf 2010).
Conclusion:
In conclusion, performance review systems are not perfect, but when well planned and the process followed correctly, they evaluate the employee performance as required. Performance review aims to develop and improve the general performance of employees and the organization to achieve its objectives. A clear process of performance appraisal should be established by the organization to avoid biases and manipulation of the appraisal process. For managers conducting the appraisals, time should be allocated specifically for the process to avoid rushing and missing the important aspects of the process.
Improving Organizational Performance
The process should be continuous and not only done when the employees have performed well. The process needs to capture a specific period and evaluation done on all aspects of work. It enables the company to determine the weaknesses of the employee and identify the training needed for the development of the employees and the organization’s growth. The organization is also able to determine gaps present in the overall performance of the employees and improve on them.
Training or outsourcing the appraisers can be done to prevent employee manipulation of the appraisers. Some employees understand the personalities of their managers and know what can be done for the appraiser only to evaluate the positive aspects of the employee. The external or trained appraisers are in a position to determine what is right or wrong. It leads to an effective performance evaluation which is not only beneficial to the employee but the organization too.
Continuous support should be provided to the employees throughout their work period to achieve their career goals and the company’s’ objectives. It ensures that employees can perform different task as required and excuses not given during the appraisal.
References:
Appelbaum, A. and Nur, A(2011).Performance appraisal decision in Malaysian public service, The international journal of public sector management, Vol.17, No.1, pp.48-64
Armstrong. M., Baron. A. (2010). Managing performance: performance management in action. London: Chartered Institute of Personnel and Development. Attitudinal Outcomes. Human Resource Development Quarterly, 18, 3
Bowman, J. S. (2010). The success of failure: The paradox of performance pay. Review of Public Personnel Administration, 30, 70-88.
DeNisi, A. S., & Murphy, K. R. (2017). Performance appraisal and performance management: 100 years of progress?. Journal Of Applied Psychology, 102(3), 421-433. doi:10.1037/apl0000085
Dessler, G., Gerhart, B. and Wright, P.M. (2011), Human Resource Management,Tenth Edition, Prentice Hall.
DeVries, D.L., Morrison, A.M., and Gerlach, M.L., (2011), Performance Appraisal on the Line, Center for Creative Leadership, Greensboro, NC
Farndale, E., & Kelliher, C. (2013). Implementing performance appraisal: Exploring the employee experience. Human Resource Management, 52(6), 879–897
Gupta, V., & Kumar, S. (2013). Impact of performance appraisal justice on employee engagement: A study of Indian professionals. Employee Relations, 35(1), 61–78.
Heslin, P. A., & VandeWalle, D. (2011). Performance appraisal procedural justice: The role of a manager’s implicit person theory. Journal of Management, 37, 1694-1718.
Ivancevich, J.M. (2009). Human Resource Management. 9th edition, McGraw- Hill/Irwin Companies, New york.pp.255-287
Kim, J. (2016). Impact of Performance Appraisal Justice on the Effectiveness of Pay-for-Performance Systems After Civil Service Reform. Public Personnel Management, 45(2), 148-170. doi:10.1177/0091026016644625
Kim, S. E., & Rubianty, D. (2011). Perceived fairness of performance appraisals in the federal government: Does it matter? Review of Public Personnel Administration, 31(4), 329–348.
Kondrasuk, J. N. (2012). The ideal performance appraisal is a format, not a form. Academy of Strategic Management Journal, 11(1), 115–130
Mulvaney, M. (2017). Performance Appraisals in Public Parks and Recreation: A Study of Employees’ Short and Longer Term Attitudes Toward the Appraisal System. Journal Of Park & Recreation Administration, 35(2), 86-107.
Sillup, G.P. and Klimberf, R., (2010), “Assessing the ethics of implementing performance appraisal systems”, Journal of Management Development, Vol. 29 No. 1, p.38-55.
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