HR Matters of Concern “Performance Reviews” Benefit or Waste Jacquetta Brown BUS 642 Business Research Methods & Tools Instructor David Brownfield January 22, 2011 Abstract: In this study, the effect of performance reviews/appraisals and its relationship on HR decision making has been investigated. In order to test this theory, I used random sampling of 10 different data reports related to the pros and cons HR are faced with concerning performance reviews.Majority companies are reconsidering performance reviews therefore requiring thorough evaluation using outside consultants.

Other companies find them a waste of time and do not do them because they are not done correctly. I was able to use data evaluation of decision theory and quantitative data collection through secondary data using public documents for this research. Across the board HR managers are confronted with the uncertainty of the future for performance appraisals/evaluations/reviews and the scope to reform them effectively.They are supposed to be used to give employees feedback on their performance and inform them if improvement is needed however; they are also used to fire an employee. The research performed will address the hypothesis that performance evaluations are based on the HR management’s ability to develop, create and implement a performance tool which allows a manager to access staff based on specific job duties as opposed to opinion and bias resulting in a company success.

Performance evaluations should include goals started, new goals, discussion of any problems or deficiencies that may be of concern, discussion of any successes of the employees, and suggestions for improvement along with how they can be implemented (the discussion of any tools, software, or procedures that would be beneficial in achieving goals or improvement. However, performance reviews cannot go along with the work environment or employees job.This in turn makes the supervisor judge employees performance rather than evaluate it so that their opinions of employee performance can be written quantitative and qualitative based on descriptive evidence and numerical support. Managers should avoid making common performance review mistakes in order to make the process more comfortable for employee and supervisor as well as productive and a useful experience.

They should not spend too much time focusing on a single high-profile event whether negative or positive, keep good records on performance deficits which may have occurred earlier during the review period in case performance improves because employee knows review is coming up, don’t be overly general in all evaluations (making same comments, offering same advice, or not differentiating each employee) and don’t make all reviews overly positive avoiding negative feedback.Performance evaluations place a great emphasis on employee accountability for results in reaching the projected company goal. This emphasis requires staff to acquire the skills, behavior and values to sustain high performance. HR has to have a more strategic approach in developing resources that are key sources which help in obtaining the projected success of company through systematically identifying, using, developing and renewing core competencies that gives them a competitive advantage.

The condition of performance appraisals are a sensitive issue for it presents challenges for HR managers dealing with the quality of service being intimately linked to the skills, motivation and commitment of the staff providing that service. The performance appraisals require the development of new competencies by skilled HR managers because they are associated with staff performance which frequently has an impact on staff morale.There are pros and cons relating to meeting projected goals, success and what will bring failure, high employment rate, high number of law suits, high staff morale, better attendance, healthier work culture, and high turnover rate. It was found that the success of a firm's performance appraisal system depends on the ability of both HR management and managers doing their jobs efficiently. While HR managers develop the system, managers conduct the actual performance evaluations. However, these roles can change depending on the size of the organization.

For example, in companies where the HR department is small, managers must assume a larger role in effective HR practices. It was also found in the article Performance Management Research Review, “Research from the Institute for Corporate Productivity (i4cp, formerly the Human Resource Institute) that there are several well-defined steps that can make performance management an effective process in any organization. Their study, finding the Keys to Performance Management: A Study of Current Trends and Future Possibilities surveyed more than 1,000 HR professionals representing various industries and company sizes.There were nine key practices for effective performance management found, and are listed as: The performance management process includes developmental plans for the future; Training is provided to managers on how to conduct a performance evaluation meeting; The quality of performance appraisals is measured; There is a system in place to address and resolve poor performance; The performance appraisal includes information other than that based on the judgment of managers; The performance review process is consistent across the organization; Employees can expect feedback on their performance more than once a year; 360 reviews are used to support the performance evaluation process; and the performance management process includes ongoing goal review and feedback from managers. According to the research team, it is not necessary to have all nine key practices, however the more practices an organization implements, the more effective the program. It doesn't matter which of the nine practices are implemented as much as how many are implemented.

Additionally, the order of implementation does not have any significant impact. (Insala. December 10, 2007). HR managers usually assume the responsibility of establishing HRM policies and procedures, developing/choosing HRM methods, monitoring/evaluating HRM practices, and advising/assisting managers on HRM-related matters. HR managers also decide what procedures to follow when implementing an HRM practice by developing or choosing specific methods to implement.

For instance, the HR manager may construct the performance review or develop a structured performance review from an outside consultant. HR managers must ensure that the firm's HRM practices are properly implemented and follow ethical guidelines.This responsibility involves both evaluating and monitoring the usefulness of performance reviews, and the success of training programs. HR managers must also monitor records to ensure that performance appraisals are properly implemented and completed.

The development of HRM procedures and methods majority of the time requires input from managers. For example, when conducting a performance review, HR managers may ask for specific information from managers then ask them to review the final written product. Additionally, from the information provided by the performance review HR managers can determine an organization's training needs and look to managers to suggest what types of training is needed and to who, in particular, needs the training.HR managers must make sure that performance reviews fall within the area of workplace ethics.

They must monitor and observe the information to ensure that all individuals are treated fairly and legally. They must investigate complaints bearing on ethical issues concerning the performance review, such as sexual harassment or violations of employees' privacy rights. They must also serve as company spokespeople by defending the company's actions when confronted by a regulatory agency or the media concerning the company’s performance evaluations. On the other hand, no company by law is required to conduct performance reviews but they are done in order for employees to perform relatively to the company’s standards.It was found that when done for these purposes, they help HR managers with merit-based compensation, promotion and layoff decisions.

They also play a role in HR manager’s decision for disciplinary actions or termination if the employee does not improve. Performance reviews were found to not to provide relative information because managers often put what they want because they don’t want to fill them out, are too lazy to fill them out honestly, or find them too time consuming so just put meets on everything so when it comes time to take a specific action, HR is deemed to keep the employee because there is no substance or support in disciplining them.Managers only provide feedback when performance reviews come up; HR managers only get feedback at the end identifying employees who are in the wrong position or the wrong department; objective and goal data is available for review six months to a year. No HR decisions can be made based on real-time relevance for specific situation making them more justifiable.

So in conclusion, performance evaluations can serve a positive purpose for companies if done correctly but it would not cause a major negative impact on HR decision making if eliminated. They are deemed to be a waste of time because most managers do not want to do them and it consists of not much useful documentation in making HR decisions.So, the hypothesis that performance evaluations are based on the HR management’s ability to develop, create and implement a performance tool which allows a manager to access staff based on specific job duties as opposed to opinion and bias resulting in a company success can be accepted. References Cooper, D. R.

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