Performance Appraisal

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HUMAN RESOURCE MANAGEMENT ESSAY

PERFORMANCE APPRAISAL SYSTEM

11 January 2010

INTRODUCTION

This essay is to answer the question two: “Critically evaluate the advantages and disadvantages of individual performance appraisals/reviews. Assess to what extent such appraisals can contribute to achieving high performance workplace.” Firstly, the essay will present an overview of performance appraisals. Secondly, it will talk about the advantages and disadvantages of individual performance appraisal in comparing with team based performance appraisals. Finally is the contribution of performance appraisal to the organization performance.

PERFORMANCE APPRAISALS

Performance management is widespread among UK companies. CIDP survey (2005) has reported that 87 percentages of organizations operated a formal performance management system. Performance appraisal (PA) is an important part of the performance management. It has been seen as an important tool to control and motivate the workplace. Redman (2005) reported that “appraisal is particularly prominent” in many UK industrial sectors and public sectors. Especially, all most employees of organizations are apprised by PA system. 91% respondents in IRS survey (2005) had used PA for all employees. With organizations didn’t applied PA for all staffs, PA was focused on managers and white-collar workers than manual workers. PA today has combined many methods to produce reliable employee assessments and minimize subjectivity. The organization will choose the appropriate approach to their culture and objectives. PA can provide many benefits for organizations. However, Taylor (1984) indicated that most employers “use PA for two main reasons: assessing past and improving future performance”. In practice, many organizations tend to be mixed up two purposes in one PA system. That has raised a lot of criticism about PA. Many people have criticized about the incompatibility arise from the different impact of these objectives on employees. Additionally, PA has been doubted about it validity and its effectiveness on organization performance. However, today, PA is still one of the useful methods to manage performance.

ADVANTAGES OF INDIVIDUAL PERFORMANCE APPRAISALS

Today, team have commonplace in many organizations. Deming had emphasized on the value of team working to organizations. However, in practice, managers usually emphasize the individual PA and don’t support much team based appraisal. The CIDP research (2005) found that 65 percentage of organizations used individual annual appraisal. Only 6 percentages use team appraisal. The main reason is that individual performance appraisal is easier to establish. According to Readman (2005) there are two variants of team appraisal. The managers can appraise the team as a whole. Then tem members will appraise each other at the individual level. Another approach is that the managers only appraise at the team level.

In the prior approach, PA must be done at both the team and individual levels; thus, the size of the measurement task will be doubled. In addition, it is difficult to separate the performance of the team from the performance of the individual. Pritchard (1990) indicated that measuring individual performance is difficult in a tem setting. That may cause difficulties in developing measures of individuals’ contribution to the team and in data collection. It can lead to distorted or meaningless results. Besides, according to Foot(2005) the colleagues may not know clearly about all aspects of the individual’s job. Hence, they can’t appraise each other well. Additionally, the relationship between members can influence appraisal. The result can also be influenced by jealousy or rivalry in team. It may cause competition between members and detriment to team work and individual performance. In many organizations, the team members may change according to work task. Hence, it’s difficult in individual assessment and...
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