Developing a Performance Appraisal System

Topics: Human resource management, Performance appraisal, Employment Pages: 5 (794 words) Published: July 2, 2014

Developing a Performance Appraisal System

Week 8 Assignment


It is important that all organizations have a successful staff in order to properly operate. This staff includes employees that are paid or unpaid; these employees need to be evaluated, normally on a yearly basis in order to receive pay raises, advancement, or rewards.  A performance appraisal program is one of the most important factors in any organization; it is a tool that is used to record employee performance good and bad. Discussion between managers and subordinates will impact a person’s job satisfaction and productivity. Although, both the managers and the subordinates do not look forward to these reviews, they should both look at this as a learning experience. “Many supervisors and subordinates hate performance appraisal exercises. Moreover, the benefits of performance appraisals for organizations are questionable.” Volume 21, Issue 2, June 2011 Performance appraisals are a necessity when considering giving promotions. This sort of system is important to those employees who have been with the company longer in order to ensure that they are fairly treated over those employees who come in at a higher wage and may not have the immediate chance for a pay increase. A pay increase should be given to those that work really hard and deserve a promotion. This also gives an opportunity for someone who has been with the company for a shorter amount of time, a chance to grow if they are doing the job better than someone who has been with the company longer. In many companies, managers only care about longevity and loyalty which can send a message to newer and more capable employees that the organization would not be open to change and new ideas. This can lose many great employees for a company. What does a performance appraisal system look like? A performance appraisal system is a mode by which an employee’s job performance is evaluated by a supervisor or other management personnel to let an how good or bad that employees are performing their job duties. The performance appraisal also allows for an opportunity to let employees know if they are not performing up to the expected standards, and to document any problems that the employee may be having. This is also an opportunity to offer any training may need to be offered. The biggest reason for a performance appraisal is so that the employee is offered any feedback on their performance, good and bad. Without any form of performance evaluation, there would be no way for an employer or for an employee to know if they are fulfilling the expectations of the employer. After searching for successful performance appraisal structures, I found from Kettner (2002), that there are many important elements in a good performance evaluation system. When developing a system you should consider the following: 1. Reinforce performance standards

2. Provide accurate and individualized feedback to employees about their performances 3. Be useful in making personnel decisions
4. Be tied to rewards, but allow for cost containment
5. Be useful for identifying training and development needs
6. Be efficient from the rater’s perspective
7. Be fair from the ratee’s perspective
8. Minimize costs of development and administration

Employee performance appraisals can have an insightful effect on all components for any organization. Managers must identify what the goals are of the organization and how these goals will be accomplished, how will these goals be communicated to all individuals in the company to ensure that the goals clear and precise. It is important that an organization makes goals and objectives for the company and its employees. In order to do this, the employer must involve their employees in the process. It is possible for every employer to create and to maintain a successful employee performance appraisal system. There will be some trial and error when attempting to put this system in place. It...
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