Methods of Performance Appraisal - Essay

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Performance appraisal of employee is important in managing the human resource of an organization. With the change towards knowledge-based capitalism, maintaining talented knowledge workers is critical. Therefore, discovering and promoting the most qualified candidates is essential because valuable human expertise is the main source of competitive advantage for the organizations. However, management classification of “outstanding”, “poor” and “average” performance may not be an easy decision. Besides that, superior might also tend to judge the work performance of their subordinates informally and arbitrarily especially without the existence of a system of appraisal. In this paper, we propose a comparison of the performance appraisal methods.

Performance appraisal roots; in the early 20th century; can be traced to Taylor's pioneering Time and Motion studies. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate. Early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.

Performance appraisal is a critical management tool to evaluate the performance of employees and their contribution to achieving the organization’s goals. Different companies employ different performance appraisal methods to assess individual performance. Each method has its own pros and cons because performance cannot be objectively quantified 100% accurate in each and every case. Therefore, some amount of subjectivity gets introduced into each method.

➢ Performance appraisal is used for career planning.

➢ Performance Appraisal Enhance employees’ effectiveness by helping to identify their strengths and weaknesses and Inform them about expected levels of performance. If employees understand their roles well, they are likely to be more effective on the job.

➢ Identifying training and development needs of employees is necessary to prepare them for meeting challenges in their current and future employment.

➢ Relations between superior - subordinate can be improved through realization that each is dependent on the other for better performance and success.

The following is the classification of the performance appraisal methods:-



➢ To compare the various methods of performance appraisal.

➢ To find out the actual number of times appraisal being carried out in an organization.

Research methodology

The methodology followed is simple random sampling. In this method, all subject or elements have an equal probability of being selected. There are two major ways of conducting a random sample. The sample size taken is 30.

Literature review

Performance appraisal is usually conducted periodically
within an organization to examine and discuss the work
performance of subordinate so as to identify the strengths and weaknesses as well as opportunities for improvement among
employees. In the conventional performance appraisal or review process, the manager annually writes his opinions of the performance of a reporting staff member on a document supplied by the HR department (Wayne Cascio,1990). In some organizations, the staff member is...
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