With reference to different types of performance appraisal, discuss how effectively performance appraisal meets the needs of the employer and the employee.
“Performance appraisal” is a discrete, formal, organizationally sanctioned event, usually not occurring more frequently than once or twice a year, which has clearly stated performance dimensions and/or criteria that are used in the evaluation process. Furthermore, it is an evaluation process, in that quantitative scores are often assigned, based on the judged level of the employee‟s job performance on the dimensions or criteria used, and the scores are shared with the employee being evaluated. (Angelo S. DeNisi and Robert D. Pritchard, 2006) For employers, performance appraisal of employees reveals actual capabilities of evaluated worker, which managers can use in organisation’s functioning in the future. However, that process of appraisal causes a lot of complaints from both employers and employees, provoking dissatisfaction, impacting on their personal comfort. One of the most important factor is that the evaluation should be conducted as objectively as possible. Currently, there is a considerable number of methods that help employers to assess employees' performance. So it is essential to regard a few of them and to make some conclusions about dignities and weaknesses which both employers and employees can meet in practice. Firms engage in the performance-evaluation process for numerous reasons. Managers may conduct appraisals to affect employee behavior through the feedback process or to justify some sort of human resource management action (termination, transfer, promotion, etc.). However, many other benefits may also accure from the information yielded by the appraisal. These benefits include increases in knowledge regarding the effectiveness of selection and placement programs, training and development needs, budgeting; human resource planning, and reward decisions (Cocanougher & Ivancevich, 1978; Dubinsky, Skinner, & Whittler, 1989; Wanguri, 1995). Most appraisal methods used throughout the world today are based, to some extent at least upon the following techniques: graphic rating scales; behaviourally anchored rating scales (BARS), behavioural observation scales (BOS); mixed standard rating scales; and management by objectives (MBO). (Dorfman et al., 1986). I discuss some of them to evaluate an influence on both employer and employees. Management by objectives (MBO) is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization in order to achieve them (Drucker, 1954). In other words, it is a process when managers and employees jointly set main objectives of the company and periodically evaluate performance. Reward is giving proportionally to the results. According to this formula, it’s essential for every work to correspond general purposes. In particular, manager’s efforts must be directed to gaining success for the whole enterprise. Using this method, employer and employees define strategic planning of individual purposes for every department, project or worker, which will increase productivity in company. Emphasis put on the quantitive aspects of effectiveness measuring in the organization. Eventually attention is given to measurable results of the employees’ performance. The rewards are paid depending on outcomes (awards, moving up the career ladder, etc.) In other words, to develop interconnected and interdependent goals and not to concentrate on particular functions and processes, its essential significantly increase the level of performance appraisal and avoid subjective factors. In addition, this method is good because it allows to create an effective program of motivation, as employees are focused straight on achieving...
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