PERFORMANCE APPRAISAL SYSTEM
According to Dailey (2003:4/3), an organisation's performance appraisal system is defined as a process which generates valid information about employee work effectiveness for the purpose of making informed HRM decisions. Organisations must evaluate employee performance for a number of reasons:
· Employees need to understand the behavioural requirements of the job
· Employees' work is evaluated for its contributions to company goals
· Employees need to know where they stand within the organization in terms of their performance
· Employees' motivation to do a good job is increased by the performance appraisal system
· Valid information about performance levels of employees should be used to make decisions about salary increases, promotions, bonuses and training needs
· Employees need a clear understanding of what the firm expects from them in terms of performance
Rewards strongly influence employee performance levels. Employees at all levels compare their efforts and rewards relative to those of other employees. A perceived equity of these comparisons leads to experienced levels of job satisfaction and motivation. The expectancy theory of motivation makes it clear that if employees perceive a weak connection between performance and reward, then the rewards will not function as motivators. (Dailey, 2005:4/14)
Group-Based Reward Systems
According to Dailey (2005:4/29), group based reward systems encourage team work and collaborative work activity in organizations where employees are arranged in self-directed teams. Managers must oversee workings of the group-based reward system to ensure that the group aspects of performance are equitably rewarded.
Group-based reward systems are overlaid on individual-based reward systems. The group-based portion has specific group performance behaviours which are linked to... [continues]
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