Performance Appraisal

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Performance Appraisal
08. Examine in detail two different ways in which employee performance appraisal can be conducted and compare and contrast their advantages and disadvantages. 04. Critically evaluate advantages and disadvantages of different methods of performance appraisal 定义:PA is a method for evaluating performance of individual workers and teams usually conducted by the immediate line managers. With the decline of careers in the flat, PA has become more important managerial tools in motivating and controlling the workforce. Appraisal is now regarded as being more important in maintaining employee loyalty and commitment than in directly managerial performance. (Bowles and Coates)

Organizations use PA for different purposes.
1. clarifying and defining performance expectations
2. identifying training and development needs
3. providing career counseling
4. succession planning
5. improving individual, team and corporate performance
6. facilitating communications and involvement
7. allocating financial rewards
8. determining promotion
9. motivating and controlling employees
10. achieving cultural change

The importance of effective PA
Results: 1) happiness with PA positively impacted on commitment 2)happiness with PA negatively impacted on turnover intention. 3)happiness with PA only had positive impact on work performance when combined with positive intrinsic motivation. Conclusion: 1) PA will only have positive impact for organization if workers happy with it. 2) Effective PA most likely to influence attitudes than work performance.

Disadvantages of PA
1. Time Consuming
It is recommended that a manager spend about an hour per employee writing performance appraisals and depending on the number of people being evaluated it can take hours to write the a department’s PA but also hours meeting with staff to review the PA. I’ve know managers who had 100 plus people to write PAs on. 2. Discouragement

If the process is not a pleasant experience it has the potential to discourage staff. The process needs to be one of encouragement, positive reinforcement and a celebration of a year’s worth of accomplishments. It is critical that managers document not only issues that need to be corrected but also the positive things an employee does throughout the course of a year and both should be discussed during a PA. 3. Inconsistent Message

If a manager does not keep notes and accurate records of employee behavior they may not be successful sending a consistent message to the employee. We all struggle with memory with as busy as we all are so it is critical to document issues (both positive and negative) when it is fresh in our minds. 4. Biases

It is difficult to keep biases out of the PA process and it takes a very structured, objective process and a mature manager to remain unbiased through the process. We will discuss rater errors in a future post.

Advantages of PA
1. Performance based conversations
Sadly this is often the case. Managers get busy with day-to-day responsibilities and often neglect the necessary interactions with staff that provide the opportunity to coach and offer performance feedback. It is the consistent coaching conversations that affect changed behaviors. 2. Targeted Staff Development

If done well, a good performance management system can be a positive way to identify developmental opportunities and can be an important part of a succession planning process. 3. Encouragement to staff

Performance Appraisals should be a celebration of all the wonderful things an employee does over the course of a year and should be an encouragement to staff. There should be no surprises if issues are addressed as they arise and not held until the annual review. 4. Reward to staff for a job well done

If pay increases and/or bonuses are tied to the PA process staff can see a direct correlation between performance and financial rewards. 5. Underperformers...
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