Performance Appraisal is no longer being taken for granted because unions and workers are skeptical about the honesty on the part of their bosses. In addition, unions and individuals feel the process is normally subjective, especially as Performance Enhancement Plan (PEP) has now taken center stage in terminating workers who are appraised to have underperformed, or failed to uphold the values of their organizations.
Performance Appraisal, also referred to as a Performance Review or Performance Evaluation, is a method by which the job performance of a worker is documented and evaluated. Many Human Resource Practitioners and scholars have several definitions for Performance Appraisal System.
According to Randall S. Schuler, “Performance appraisal is a formal, structured system of measuring and evaluating an employee’s job, related behaviour and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization, and society all benefit.”
It is the process of evaluating the performance and qualifications of a worker in terms of the requirements of the job for which he is employed, for purposes of administration including placement, selection for promotions, providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally.” From a worker’s point of view, a performance appraisal is meant to help workers realize their strengths and shortcomings and receive compensation accordingly.”
Performance Appraisal systems help managers evaluate workers job performance and develop a fair system of pay increment and promotions in line with the achievement of assigned targets. This in turn can help staff members improve performance, and assist companies in devising or reorganizing job functions to better fit the position or the worker.
The process aids in assessing workers performance by way of comparing present performance with already established standards that have been already communicated to the workers, subsequently providing feedback to the workers about their performance level for the purpose of improving their performance as needed by the organization.
Performance appraisals offer several advantages at the level of the individual worker and the organization as a whole. Some of the individual benefits of the process involves
- Recognition of past effort
- Developmental requirements can be uncovered
Some advantages to the team include:
- Alignment of effort with objectives
- Motivation of team members
And advantages to the organization include
- Development of staff
- Achievement of key objectives
- Best and focused utilization of human resources
As a result of the benefits to the individual, team and organization, there are good reasons for having an appraisal process in place. However, to maximize these benefits – the organization must first of all support the appraisal process through:
- Appropriate resources to facilitate the process
- Design of a suitable process for the organization
- Training of management in the process
- Training of personnel in the process