The Performance Appraisal Process Is Problematic Because It Requires Subtle Psychological and Social Skills, Which May Not Be Acquired by Many Managers.

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There has been a shift in attitudes and values as a focus, from employees and employers pursuing their traditional roles to the more revolutionary methodology, which the organisations have now become accustomed to. The modern approach involves the formation of an intertwining relationship between employee goals and the vision and goals of the organisation, commonly known as ‘Performance Management.’ Performance Management is a process by which the accomplishment of goals, usage of information in making key decisions, and allocating resources are all effectively collected and evaluated as an organisation monitoring strategy. ‘Performance Appraisal’ is a fundamental apparatus that plays a significant role in the performance management system. Performance appraisal is the process by which an individual's work behaviours and outcomes are measured against the expectations of the job. Performance appraisal should be a positive experience and contribute to the overall welfare of the organisation. If done properly, performance appraisal is a very effective tool in improving performance and productivity, and for development of employees. It helps individuals to do better, raises self-esteem and motivation. Above all it strengthens the management/subordinate relationship and fosters commitment. However, there are vital aspects in an effective performance appraisal that must be met, which include assessing performance against agreed targets and objectives, and behaviour and attitudes against espoused values; using psychological skills to provide constructive feedback on individual’s performance while emphasising on positive reinforcement; and having a frank exchange of views and having a joint agreement on how to improve or sustain performance. It is also important to stress that a positive relationship between individuals and line managers, and the social and psychological skills of line managers play a significant role in conducting an effective performance appraisal. In...
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