extracts why performance appraisal

WHY PERFORMANCE

APPRAISAL?

l.barning,

march 2009

WHY PERFORMANCE APPRAISAL?

CFZAMBIA - Implementing Performance Appraisal- L. Barning - 2009/02/28 2

Most appraisal systems are resented by managers in an attempt to avoid the

embarrassment associated with deciding the fate of a subordinate and

criticizing the subordinate’s performance. To most managers scrapping it

would be a lesser evil. Resentment remains not only with the appraiser but

also the appraisee. Most subordinates dislike the notion of their fate being

decided by men who lack the expertise to do so and the use of procedures

some of which are far from satisfactory. To most managers the whole

system is a waste of time hence a less positive deameanour adopted

towards it. It is mostly regarded as a burden when supervisors and

employees are convinced that the outcome of the performance appraisal is

not worthwhile.

The respect we hold for the inherent value of the individual leaves us

distressed when we must take responsibility for judging the personal worth

of another person. Yet the conventional approach to performance appraisal

forces us not only to make such judgment and to see them acted upon but

also communicate them to those we have judged. Small wonder - we

resist!!

It is an undeniable fact that without the inputs provided by employees,

organizations will cease to exist in the first place. Effective management

of an organization’s human resource should therefore be seen as a primary

duty to achieve organizational survival and success in today’s competitive

business environment.

A behaviour known as performance


Why do people behave as they do? A classic formulation by Kurt Lewin is

that behaviour is an interactive function of a person and his or her

environment or describes it as: B= f(P,E) . The environment, friends,

neighbours, the community and society are all a part of the environment

that influences a person’s behaviour. Within an organization, the

management and its structural considerations: designs, systems, policies,

procedures, rules and regulation play a major role in determining the

behaviour of employees. An employee behaviour that all organizations want

– whether the Secret Service, General Electric, and even the Mafia is a

behaviour known as performance. Yet, how do we ensure that employees

perform at their optimal level?

To ensure that individuals are acting in the best interest of an organization,

it is necessary to have a means for measuring employees’ contribution in

terms of productivity in the organization. This system of measurement of

performance is Performance Review or Appraisal.

Assessment of an individual’s performance goes beyond assessment of past

behaviour. It most significantly includes goal setting for future behaviours

and corrective action for unwanted behaviours. Indeed, most organizations

if not all, also make use of results of performance appraisal as a yardstick

for financial reward/incentive and so long as financial rewards are fulfilling

up to a certain level, it is evident that employees performance will be

skewed towards achievement of the organization’s goals.

Research shows that effective performance appraisal systems help to create

a motivated and committed work force. However, its effectiveness requires


the commitment and support of top management to be able to translate

organizational goals and objectives into personalized employee goals.

It is therefore necessary to train supervisors, raters and employees alike to

appreciate the benefits of performance appraisal.

Management can make informed decisions faster if performance is planned,

reported and measured correctly. Done in an effective manner, it helps the

organization monitor potential problems as well as take good strategic

decisions. The adequacy of skill level of staff, impacts immensely on

productivity, profitability and survival. Therefore for organizations to

achieve corporate goals and remain in business, there is the need to assess

employees and determine strategies to manage them in an effective

manner.

The issue of employee performance in relation to achieving organizational

goals have occupied management’s attention for a long time. Differences in

levels of performance are attributed to differences in skill and ability in one

part and different levels of motivation in another. Inadequate skills and

ability are usually rectified through training and development, while

differences in motivation are corrected through the necessary or

appropriate motivational strategies and policies. (Eg. Financial rewards,

recognition, promotion etc.) Therefore for properly functioning

organizations, the uses of performance appraisal cannot be overemphasized.

However, the extent to which appraisals play a valuable role in the

organization depends on how it is conducted.

Performance Appraisal Systems involves

1. The form and method used to gather appraisal data.


2. How to identify the appropriate criteria against which to establish

standards for evaluating the appraisal data

3. Establishing the validity and reliability of the methods used;

4. The characteristics of the rater and the appraisal feedback and the

interview process

5. The process involved in using the appraisal information for

development and evaluation

6. The evaluation of how well the performance appraisal is doing in

relation to the stated objectives.

To be effective, a standard must have certain characteristics and be

specific. To give meaning to this standard, more information is needed in

order to develop a standard that is measurable as possible. A good standard

must be challenging enough to stimulate interest. It should reflect a solid

contribution to ‘stretch’ the employee to achieve the supposedly set

targets. In spite of the benefits that organization can obtain from this

process, it has also been observed that many appraisal systems are not

relevant to organizational objectives, are subject to personal bias and often

influenced heavily by personality than by performance. There is a concern

therefore that most performance appraisals systems are inadequately

designed. As a result, appropriate data that can be used for making human

resource and administrative decisions are not often obtained.

Typically, most institutions will fill vacancies regardless of the quality and

quantity of existing workforce as evidenced in some organizations. There

are basic reasons why the system is not fully utilized optimally:


1. Appraisers do not have a good understanding of the use of appraisal,

nor have they been given proper training.

2. Performance appraisals are not necessarily tied to reward and

promotion. Within the public sector, where salary increments are

across board, performance appraisals have little or no impact on

performance of employees. Also promotion is more related to the

number of years one has served and not how well one has performed.

3. Due to lack of education, employees may react to performance

evaluation with suspicion and hostility. Most subordinates perceive

evaluations as criticism of their performance especially when the

results are negative.

4. Feedback is an integral part of performance evaluation, however, in

some instances, employees receive little or no feedback. If given,

however, it is done in such a manner that brings about conflict.

Though organizations have a legitimate right to evaluate, many are

uncomfortable with the idea. This process to some is demoralizing,

dehumanizing, distressful and creates anxiety. The general idea to most is

that appraisals cannot serve the needs of performance evaluation and

development at the same time. However, there is a middle ground where

one can objectively assess an employee as well as encourage and develop

them in a balanced manner to achieve organizational goals.

A well-defined performance appraisal system will have other benefits in

addition to ensuring that employees are performing in a manner that

supports organizational plans and needs. The most benefit derived from

Performance Appraisal is first and foremost improved productivity because


employees are taught or learn how their work behaviour directly affects

productivity of the organization.

Also, there is improved employee relations when employees see the

consistency in the evaluation process and can identify that performance

problems are dealt with early rather than allow the situation to deteriorate.

The organization will easily develop an inventory of skills and abilities of the

workforce that allows maximum utilization of the existing employees who

correct their own performance problems because they are made aware in a

positive manner. Performance appraisals will also disclose any weaknesses

in the recruitment and selection process. Indeed by following the yearly

data related to new jobholders, it is possible to assess whether the general

quality of the workforce is improving, staying steady or declining.

This therefore suggests that the appraisal system operating within an

organization must have optimal credibility based on clear ethical principles

where trust and openness are fundamental values of the system. These

principles therefore must apply:

1. Appraise on the basis of representative information

2. Appraise on the basis of sufficient information

3. Appraise on the basis of relevant information

4. Make an honest appraisal

5. Keep written and oral appraisals consistent..

extracts why performance appraisal

Documents