While nobody particularly enjoys them, performance appraisals are a beneficial tool used by organizations. An appraisal evaluates not only the employee's performance but also his potential for development. As stated in the text, “The main objective of performance appraisals is to evaluate employees' work performance” (Youssef, 2012).
Performance appraisals also show the success and efficiency of achieving organizational goals and objectives and provide necessary feedback to employees that will help them keep on track.This paper will show how effective performance appraisals can increase employee performance, the strategic advantages of performance appraisals, potential forms of bias within the appraisal system, and how performance appraisals can contribute to the achievement of strategic objectives. A performance appraisal is a process in which a rater or raters evaluate the performance of an employee. Feedback may occur throughout the workday, but many organizations also have a more formal process of providing feedback to employees.As stated by Jonathan Segal, “The performance appraisal lets top performers know, in a concrete way, how much they are valued by the organization.
As such, it is a necessary component of a comprehensive employee retention program” (Segal, 2000). A few of the benefits those appraisal systems can provide are: communicating deficiencies, ensuring consistency, distinguishing among employees, recognizing valued performers, and communicating strategic vision. The performance appraisal process requires supervisors to take note of what is lacking in employee performance at least once a year.Without this process, supervisors may be hesitant to tell an employee that their work is not up to standards.
It may also increase the potential for consistency by ensuring that all similarly situated employees are evaluated on the same criteria. Since a performance appraisal is performed between two people that have a working relationship, there is room for bias. As an example, say the rater does not particularly like the person being evaluated. There could be some bias based on those feelings rather than the employees work performance.On the other hand, the two individuals involved in the appraisal could be really good friends outside of work which could also create bias. There are other forms of bias such as stereotyping or the halo effect that can also take place.
While there are biases natural in appraisals, understanding and being aware of them should help to lessen their impact. Effective performance appraisals can help an organization reach its strategic objectives. Also stated by Segal, “An important element of conducting a performance appraisal is establishing employee goals, which, ideally, should be tied to the organization’s broad strategic aims” (Segal, 2000).They do this by working to increase employees’ productivity, which allows the organization to get the most out of their salary and wage expenses.
Performance appraisals can identify and address any employee mistakes that cost the organization money. It also allows for praise to an employee. Everyone likes to hear when he or she does a good job and in hearing praise, it makes him or her want to continue to do a good job for more praise. No one likes being judged, but a performance appraisal can be a great thing for both an organization and it’s employees.
Segal also states that, “When properly executed, an appraisal instrument can become a powerful tool for establishing corporate culture and ensuring that employees understand and act on the organization’s broad strategic goals” (Segal, 2000). In short, performance appraisals are necessary to keep personnel in line with the goals of the organization. Without them, personnel would be performing blindly by not knowing if they are performing to standards or if they are actually doing a great job.In conclusion, we have talked about how effective performance appraisals can increase employee performance, the strategic advantages of performance appraisals, potential forms of bias within the appraisal system, and how performance appraisals can contribute to the achievement of strategic objectives. Performance appraisals are a necessary tool that will provide feedback to employees on how they are living up to the organizations goals and objectives.
Feedback is absolutely necessary so employees can improve their performance.
