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In the last decade, performance appraisals have undergone so many changes. During recent years performance appraisal systems have tended to move away from being primarily control and maintenance based and have moved towards an approach more concerned with motivational and developmental issues. As human resources management evaluative tools, performance appraisal measures are widely used by managers. They need to know and analyze their employees’ abilities and accomplishments during a given period. If adequately informed on their employees’ capacities and performances-whether the results are positive or negative- managers can implement actions which will help motivate the employees to improve their performance. The empirical-and variable-based nature of these measures provides a more balanced view of how well employees fare in accomplishing their specific tasks allotted for their positions. While all industries generally use performance appraisals in one way or the other, these measures are specifically important for service-oriented firms whose very survival rely on customer satisfaction on their employees’ service to them. Hence, performance appraisals for the service sector count on a.) The managerial view of their employees’ performance and b.) The extent of customer satisfaction with their handling of issues and wants.
A performance appraisal is the process of assessing workers performance in comparison to certain predetermined organizational standards. Appraisals not only help employees understand how they are doing but they also help the worker’s supervisor along with the organization as a whole.
Performance appraisal is an important part of performance management. In itself it is not performance management, but it is one of the range of tools that can be used to manage performance. Because it is most usually carried out by line managers rather than HR professionals, it is important that they understand their role in performance management and how performance appraisal contributes to the overall aims of performance management.
Performance appraisal is one way of giving employees feedback about their performance at work. According to ACAS appraisals regularly record an assessment of an employee’s performance, potential and development needs. Performance appraisal is a formal system of measuring, evaluating, and influencing an employee’s job-related attributes, behaviors and outcomes.
In some organization’s appraisal results may be used to determine relative rewards in the firm who should get merit pay increases, bonuses, or promotions. Similarly, appraisal results can be used to identify the poorer performers who may require some form of counselling, demotion, dismissal or decreases in pay. Interestingly, performance appraisal is a very controversial managerial issue. Some researchers have expressed doubts about the validity and reliability of the process. On the other hand, there are advocates of performance appraisal who claim that it may well be the most critical of all Performance Appraisal and Motivation.
Performance appraisals provide employees with recognition for their work efforts. The appraisal system provides the supervisor with an opportunity to indicate to employees that the organization is interested in their performance and development. This recognition can have a positive motivational influence on the individual’s sense of worth, commitment and belonging.
Work Performance in most organizations is determined in most cases by performance appraisal. The Implementation of performance appraisal on employee work performance and subsequently the derived feedback from the process have recently derived attention from both researchers and the management of any organization. However, the knowledge of gaining the trust of employees as well as getting the appropriate feedback is seriously lacking.
How to Use Performance Appraisals to Motivate Employees
Motivation is the process that energizes employees and propels them to pursue their goals. Well-designed and well-executed performance appraisals have a strong motivational impact. Appraisals have the power to motivate employees because they provide a number of interconnected benefits
•They demonstrate the need for improvement. If employees don’t have a clear understanding of how they’ve been performing, they can’t be motivated to make any improvements.
•They meet higher-level psychological needs. Researchers continue to find that recognition is one of the most powerful forms of motivation for large numbers of employees. Although you can find numerous possible sources of recognition on the job, performance appraisals are an opportunity for employees to receive formal, significant, and enduring recognition from their manager.
•They build a sense of personal value. When managers take the time and effort to carefully review, analyze, document, and discuss performance with employees, the underlying message to the employees is that they’re important and valuable, and this alone is quite rewarding, whether the feedback is positive or not.
•They enhance personal development. Performance evaluations are motivational for employees who are looking to enhance their personal learning, growth, and development. Appraisals are a highly valuable source of information, insights, and tools necessary for such progress. Performance appraisals are similarly motivational for employees whose needs are centered on achievement, goal attainment, and sensing personal effectiveness, respect, and trust.
•They turn employees around. When employees are performing poorly, performance appraisals can provide the wakeup call that they need to get refocused and reenergized. With performance appraisal, however, the purpose of the session is not strictly disciplinary, so the employee is more likely to walk in with a more receptive and open mind. As a result, your comments regarding an employee’s questionable performance have an excellent chance of being heard and generating action as a result.
They increase satisfaction. When performance appraisals meet the employees’ needs in such areas as gaining recognition, sensing achievement and competence, experiencing growth, and meeting objectives, they’re also contributing to the employees’ job satisfaction, and this is one of the most important elements at work today. When employees are satisfied, some of the most visible indicators are reduced turnover, absenteeism, and tardiness.
While the term performance appraisal has meaning for most small business owners, it might be helpful to consider the goals of an appraisal system. They are as follows:
1.To improve the company's productivity
2.To make informed personnel decisions regarding promotion, job changes, and termination
3.To identify what is required to perform a job (goals and responsibilities of the job)
4.To assess an employee's performance against these goals
To work to improve the employee's performance by naming specific areas for improvement, developing a plan aimed at improving these areas, supporting the employee's efforts at improvement via feedback and assistance, and ensuring the employee's involvement and commitment to improving his or her performance.
All of these goals can be more easily realized if the employer makes an effort to establish the performance appraisal process as a dialogue in which the ultimate purpose is the betterment of all parties.
To create and maintain this framework, employers need to inform workers of their value, praise them for their accomplishments, establish a track record of fair and honest feedback, be consistent in their treatment of all employees, and canvass workers for their own insights into the company's processes and operations.
An employee performance appraisal is a process—often combining both written and oral elements—whereby management evaluates and provides feedback on employee job performance, including steps to improve or redirect activities as needed. Documenting performance provides a basis for pay increases and promotions.
Appraisals are also important to help staff members improve their performance and as an avenue by which they can be rewarded or recognized for a job well done. In addition, they can serve a host of other functions, providing a launching point from which companies can clarify and shape responsibilities in accordance with business trends, clear lines of management-employee communication, and spur re-examinations of potentially hoary business practices. It's no wonder that the result is a mutual dread of the performance evaluation session—something to be avoided, if at all possible. This is no way to manage and motivate people. Performance appraisal is supposed to be a developmental experience for the employee and a 'teaching moment' for the manager."
PERFORMANCE APPRAISAL AND DEVELOPMENT
While the term performance appraisal has meaning for most small business owners, it might be helpful to consider the goals of an appraisal system. They are as follows:
1.To improve the company's productivity
2.To make informed personnel decisions regarding promotion, job changes, and termination
3.To identify what is required to perform a job (goals and responsibilities of the job)
4.To assess an employee's performance against these goals
To work to improve the employee's performance by naming specific areas for improvement, developing a plan aimed at improving these areas, supporting the employee's efforts at improvement via feedback and assistance, and ensuring the employee's involvement and commitment to improving his or her performance.
All of these goals can be more easily realized if the employer makes an effort to establish the performance appraisal process as a dialogue in which the ultimate purpose is the betterment of all parties. To create and maintain this framework, employers need to inform workers of their value, praise them for their accomplishments, establish a track record of fair and honest feedback, be consistent in their treatment of all employees, and canvass workers for their own insights into the company's processes and operations.
A small business with few employees or one that is just starting to appraise its staff may choose to use a prepackaged appraisal system, consisting of either printed forms or software. Software packages can be customized either by using a firm's existing appraisal methods or by selecting elements from a list of attributes that describe a successful employee's work habits such as effective communication, timeliness, and ability to perform work requested. Eventually, however, many companies choose to develop their own appraisal form and system in order to accurately reflect an employee's performance in light of the business's own unique goals and culture. In developing an appraisal system for a small business, an entrepreneur needs to consider the following:
1.Size of staff
2.Employees on an alternative work schedule
3.Goals of company and desired employee behaviors to help achieve goals
4.Measuring performance/work
5.Pay increases and promotions
6.Communication of appraisal system and individual performance
