APPRAISAL SYSTEM

Appraisal System

Appraisal System

Introduction

The performance appraisal is an integral part of a human resource management system. In addition to allocating rewards, organisations use appraisals to provide developmental advice to employees, as well as obtain their perspectives and justice perceptions about their jobs, departments, managers and organisations (Erdogan 2002, 555-78). Ideally, appraisal discussions provide employees with useful feedback they can immediately apply to improve their performance. This feedback includes suggestions for change, as well as encouragement to continue with positive behaviours. Managers show employees how improving their overall performance and developing new skills will lead to additional responsibilities, promotions and increased monetary benefits. Employees appreciate this honest feedback and become motivated to improve their performance. In addition, managers benefit by receiving insightful input on ways to improve both their leadership styles and departmental operations. The relationship between the manager and employee is strengthened by this interchange of ideas and impressions. This paper discusses the main types of apprasial methods used in organisations and then critically evaluates which onces are most useful in practice. It also discusses the advantages a propely implemented apprasial system can bring to an organisation.

Discussion

Types of Appraisal Methods Used In Organisations

There are many types of performance appraisal methods. Some of them are discussed below.

Job Results

Though not an appraisal method per se, job results are in themselves a source of data that can be used to appraise performance. Typically, an employee's results are compared against some objective standard of performance. (Bowen, Lawler 1992, 29-41) This standard can be absolute or relative to the performance of others. Results indexes are often used for appraisal purposes if an employee's job has measurable results. Examples of job results indexes are dollar volume of sales, amount of scrap, and quantity and quality of work produced. When such quantitative results are not available, evaluators tend to use appraisal forms based on employee behaviours and/or personal characteristics.

In some cases, appraisals may focus on results rather than behaviours. This is especially true where job content is highly variable, as in many managerial positions, thus making it difficult to specify appropriate behaviours for evaluative purposes. Results indexes such as turnover, absenteeism, grievances, profitability, and production rates can be used to evaluate the performance of organisation units.

Essay Method

The essay method involves an evaluator's written report appraising an employee's performance, usually in terms of job behaviours and/or results. The subject of an essay appraisal is often justification of pay, promotion, or termination decisions, but essays can be used for developmental purposes as well.

Since essay appraisals are to a large extent unstructured and open-ended, lack of standardization is a major problem. The open-ended, unstructured nature of the essay appraisal makes it highly susceptible to evaluator bias, which may in some cases be discriminatory. By not having to report on all job-related behaviours or results, an evaluator may simply comment on those that reflect favourably or unfavourably on an employee. This does not usually represent a true picture of the employee or the job, and content validity of the method ...