Performance Appraisal as a Positive Part of the Performance Management Process

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Performance Appraisal as a Positive Part of The Performance Management Process:

(A Case of Mofas Shipping-Line)

By

Ola Kazeem Falodun
KINGSGATE Ireland

March 2008
Introduction

Performance appraisal as a positive part of the performance management process has come a very long way in the history of human resource management. Performance appraisal is one of the central pillars of the performance management which is directly related to the organizational performance and have a direct and significant impact on it. Performance appraisal has been, and is still the strength of performance management,.

The main focus of this work is centred on:
Assessing critically how the formal appraisal system can contribute to the performance management process Identifying and explaining a range of methods of appraisal, considering their objectives and limitations Explaining how an appraisal system can be successfully introduced and maintained within an organisation Analysing an appraisal system in an organisation

In carrying out this work, the researcher discovered that there is a strong relationship between performance appraisal and performance management, it can affect the organizational performance both positively and negatively, and should be dealt with care and expert knowledge and experience.

1.1 Definitions
(a.) Performance management
Armstrong and Baron (2005) defined it as "a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance".

(b.) Performance appraisal
“It is a process that brings together all the different approaches to the management of Performance“ Taylor (2005).

2. Contributions of The Formal Appraisal System to The Performance Management Process In establishing the contribution of the formal appraisal system to the management process, Price, (2004) emphasised that enthusiasts for performance assessment argue that it serves a key integrating role within organisation’s human resources processes by contributing these to performance management process:

a. Motivation and Satisfaction
Performance appraisal can have a profound effect on levels of employee motivation and satisfaction. Performance appraisal provides employees with recognition for their work efforts. The existence of an appraisal program indicates to an employee that the organization is genuinely interested in their individual performance and development.

The strength and prevalence of this natural human desire for individual recognition should not be overlooked. Regular performance appraisal, at least, is a good start.

b. Training and Development
Performance appraisal offers an excellent opportunity for a supervisor and subordinate to recognize and agree upon individual training and development needs. During the discussion of an employee's work performance, the presence or absence of work skills can become very obvious.

From the point of view of the organization as a whole, consolidated appraisal data can form a picture of the overall demand for training. This data may be analysed by variables such as sex, department, etc. In this respect, performance appraisal can provide a regular and efficient training needs audit for the entire organization.

c. Recruitment and Induction
Appraisal data can be used to monitor the success of the organization's recruitment and induction practices. Appraisal data can also be used to monitor the effectiveness of changes in recruitment strategies. By following the yearly data related to new hires, it is possible to assess whether the general quality of the workforce is improving, staying steady, or declining.

d. Employee Evaluation
Noticeably, often understated or even denied, evaluation as a legitimate and major objective of performance appraisal. Though many people still recoil from the idea that organizations have a clear right to conduct...
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