Performance Appraisal & It's effects to Employees & Organizational performances

 

·  What is “Performance Appraisal”?

Performance Appraisal can be characterized as the proper evaluation and rating of people by their managers at periodical review meetings. Interestingly it is a persistent and a lot more extensive, more complete and more regular cycle of the management that explains shared desires, underscores the help part of supervisors who are required to go about as mentors instead of judges, and spotlights on what's to come (Armstrong, 2006).

This has been undermined in light of the fact that time and again it has been worked as a top-down and generally administrative framework claimed by the HR Department rather than by line managers. It would in general be in reverse looking, focusing on what had turned out badly, instead of anticipating future improvement needs. There was practically no connection among them and the requirements of the business. (Armstrong, 2006).

·  As per Levinson (1976) Performance appraisal consists with three functions

1. To provide adequate feedback to each person on his or her performance
2. To serve as a basis for modifying or changing behavior toward more effective working habits
3. To provide data to managers with which they may judge future job assignments and compensation. 

·  As per Grub (2015), following are the common characteristics of the performance appraisal

1. Outside Judgement - Using the performance standards, each employee’s individual actual work performance, behaviors, production, or traits are compared with the performance standards by someone other than the employee.
2. Specified Time Period - Employee ratings, judgments, and assessments relate to a specific time period rather than a particular work product or project
3. Standardization - The process is systematically applied to all employees or class of employees.
4. Mandatory - The process is typically mandatory although certain upper-level executives may be excluded.
5. Documented - The results of the ratings, judgments, or assessments are recorded and preserved by someone in the organization other than the rated employee.

 

· Following are some conflicts inherent to the performance appraisal system in line with the afore mentioned characteristics, Grub (2015).

1. Employee interpersonal conflicts - If the appraisal feedback is positive, it affirms their self-concept of competence and success. Positive feedback serves to reinforce the current performance. If the feedback is unfavorable, to minimize its importance they may engage in defensive behavior.
2. Employee – Employee Conflict - With a system of few winners and many losers, interpersonal competition for limited “Outstanding” ratings necessarily reduces cooperation and organization citizenship behavior.
3. Employee – Supervisor Conflict - Performance appraisal requires supervisors to simultaneously play two incompatible roles—judge (evaluator) and helper (developer). Supervisors want to maintain good relations with their employees; they realize it ultimately depends on trust. They also believe they should honestly let people know where they stand and help them improve. But they also realize that giving employees critical feedback may seriously de-motivate them, as it attacks their self-esteem.
4. Supervisor – Leadership conflict - Performance appraisal is a tool designed to control the job behavior of employees. It sets forth the expectations and standards for satisfactory performance of assigned job duties. It is designed to treat employees as part of the productive machinery of the organization. It serves as a substitute for, and discourages leadership behavior.
5. Employee – Organizational conflict - In using performance appraisal, the organization establishes the conflicting objectives of employee evaluation and employee development. To develop employees, the organization wants them to be open to, and even supply, negative information about themselves so the organization can help improve their performance. But documenting this information on the employee’s performance evaluation may adversely impact the performance rating and hence any performance pay or promotion consideration, and consequently the employees self-esteem.
6. Supervisor – Organizational Conflict - Performance appraisal disempowers and demotivates supervisors by requiring that they obtain employee performance through control and documentation rather than by leadership.

Conclusion

With reference to the above, it is commonly observed that most of the organizations are using the “Performance Appraisal” method in a much straight forward manner which causes many of the conflicts (As defined above) which we observe presently. Most of the conflicts could be easily categorized to the above which proves that the local organizations are still relying on the institutional performance based on the “Performance Appraisal” of employees. Keeping a balanced focus on Employee Development, Motivation & Team work together with the “Performance Appraisal” will be much effective to improve the organizational performances.       

 

References

https://hbr.org/1976/07/appraisal-of-what-performance - Hardward Business Review – Performance Measuement by Harry Levinson

https://www.researchgate.net/publication/228653738 - Journal of Human Resource Education - Performance Appraisal Reappraised by Todd Grub

Handbook of Human Resource Management Practices – Michael Armstrong, 2006