A New Framework for Selection of the Best Performance Appraisal Method Mostafa Jafari Industrial Engineering Department, Iran University of Science & Technology Narmak, Tehran, Iran E-mail: email@example.com Tel: +98-912-1382658 Atieh Bourouni Industrial Engineering Department, Iran University of Science & Technology Narmak, Tehran, Iran E-mail: firstname.lastname@example.org Tel: +98-912-5007402 Roozbeh Hesam Amiri Industrial Engineering Department, Iran University of Science & Technology Narmak, Tehran, Iran E-mail: email@example.com Tel: +98-912-5356487; Fax: +98-21-88814576 Abstract Performance appraisal is one of the most important processes in human resource management, because it has a great effect on both the financial and program components of any organization. There is a verity of methods for the appraisal of employees' performance. Obviously, no method can claim that it has an integrated approach in performance appraisal. Therefore, human resource managers should select an appraisal method which is most efficient in their organizations. In this paper, we propose a framework for the selection of appraisal methods and compare some performance appraisal methods in order to facilitate the selection process for organizations. The value of this framework is that, with use of it, organisations can evaluate their performance appraisal method with respect to the key features of it before implementing any method as well as expending extra costs. This framework is theoretical in nature, and is build based on a review of related literature. Keywords: Human Resource Management, Absolute Standards, Relative Standards, Objectives Approach, Simple Additive Weighting (SAW), Personnel Psychology
One of the basic and major needs in any organization is to evaluate its employee’s performance contiguously and continually to find out whether they improve or not and know their situation in organization. There are many methods for performance appraisal which are suitable for different situations and organization’s characteristics. the major focus of enquiry for several authors (e.g. Freeman, 2002; Seddon, 2001; Wilson and Western, 2000; Randell, 1994; Segall, 1989; Long, 1986) has been examining why, in such a volatile environment, performance appraisal systems tend not to 92
European Journal of Social Sciences – Volume 7, Number 3 (2009) incorporate goals and the direction or strategic needs of the business, or the personal aspirations of the employees and their future development. The HR strategies adopted by an organization (Harris, 1994) may have an effect on the type of appraisal system adopted by an organization. The purpose of this paper is to present a framework for performance appraisal comparison and show how organization can use it. The purpose of this comparison can be summarized in two objects (Avison, 2006): 1. Academic purpose: for better understanding of nature of techniques in order to doing classifications and improving coming knowledge mapping 2. Practical purpose: to select a technique or part of one or more techniques for specific application or the whole of organization. There are many successful (Pettijohn et al., 2001b; Roberts & Reed, 1996; Pettijohn et al., 2001; Roberts, 2003; Shah & Murphy, 1995; Martey, 2002; Austin, 2008; Simmons, 2005; Ford, 2004; Khoury, 2004; Grifell-Tatjé, 2008) and unsuccessful (Blackmore, 2005; Shih, 2005; McAdam, 2005) cases because of suitable or unsuitable performance appraisal methods. In additional, Verbeeten (2008) argued that the definition of clear and measurable goals is positively associated with quantity and quality performance. The results suggest that the behavioral effects of performance management practices are as important as the economic effects in organizations. In this paper, in order to select an appropriate appraisal method, the Simple Additive Weighting (SAW) is...