Mangers and supervisors tend to be concerned to motivate the employees to work hard and effectively, thereby, the organization objective can be achieved though great performance from the workforce. Performance appraisal is an important part of performance management, which could be considered as one of the essential tools that can be used to manage performance. Performance appraisal, as suggested, is the process by which the performance, potential and develop needs of individual worker is recorded. Through the feedback, the assessment of the employees can be achieved, as well as the objectives agreed. (ACAS, 2003). Although, business organizations today try their best to make great use of performance appraisal, the actual operation of performance appraisal still confronts a variety of dilemmas in practice.
This paper is designed to give some suggestions to the managers for improving the organization’s performance in the application of Performance Appraisal. It firstly examines the various advantages of the performance appraisal. Following the theoretical benefits, the essay addresses the problems issues by focusing on the areas of performance appraisal in practice and the development in human resource management. At the end, several solutions are suggested to improve the conduction of performance appraisal and develop the whole organization’s performance.
Theoretically, a few benefits can be brought from implementing the performance appraisal.
To begin with, as an element of performance management, performance appraisal is adopted by managers not only to help set up a specialized culture of an organization, but also develop it, namely culture change (Williams, 2002). As defined by Brown (1998), organizational culture refers to the beliefs, rules and management style that are formed during an organization’s history and used to control the behavior of members in the organization. An identifiable, particular and consistent culture is of great importance for an organization. Via formal appraisal, employees’ feedback and interviews, PA provides managers a number of useful data and information, which can be used in the process of culture change for an organization. With the information, managers could overlook personal behavior and examine organizational functions to find out the problems in the organization, then figure out feasible strategies for culture change (Murphy and Cleveland, 1995).
The second benefit that needs to be considered is that performance appraisal could help to clarify and define the performance objectives. (Bowels and Coates, 1993; IRS, 1994, 1999) Managers need to set up the planning and goals in order to help organization to achieve high performance. According to Bevan and Thompson (1992), the performance appraisal could help managers to communicate the clear objectives with subordinates, and establish individual and departmental goals which are related to organization’s overall objectives (Bevan and Thompson, 1992). At the same time, performance appraisal could help employees to clearly understand goals of organization and the expectation of their tasks.
Furthermore, another advantage which is explored to be obtained from performance appraisal is that it can help to improve employees’ motivation. The managers can reach this achievement through establishing an appropriate reward system which is on the basis of employees’ performance. Appraisal systems can provide valuable performance information to a number of critical human resource activities, such as merit pay, promotions (Taylor, Tracy, Renard, Harrison, Carroll, 1995). Performance appraisal provides a set of data and information about the workers performance, which can be used for the decision making of payment and promotion. Furthermore, performance-related pay is always considered to be fair, and equity can be applied thoroughly in the reward mechanisms (Foot, 1946).
In addition, performance appraisal...