Are performance appraisals necessary for team-oriented organizations? Performance Appraisals are almost never considered sound. Everybody and anybody can complain about it, yet it is used in all structured organizations. The fact that more and more organizations are becoming team-oriented also means evaluation of performance is also becoming tougher by the day. In a team-oriented organization the need for evaluation of both individual and team performance arises. Performance Evaluation is the first step of performance improvement.
Performance appraisals, whether team or individual, provide feedback to workers or organizational teams. Traditionally, performance evaluations provide information to help improve performance, increase efficiency and define management's expectations. Performance appraisals compare work performed against measurable objectives that the employee and supervisor agreed to at the beginning of the appraisal period. As work has become more team oriented, performance appraisals now measure how a team of workers perform rather than just how an individual performs his job. Performance evaluations are useful in giving employers information on the performance of their workers and recognize gaps for training. They are also an important tool for giving employees feedback on areas of growth, and communicate what the employer expects of them. As companies embrace working in teams, evaluation has expanded to include team performance evaluation, which differs with individual performance evaluation in several ways. As organizations become flatter (companies like GE have reduced the number of levels by a factor of two over the last 20 years) more and more research shows that "boss-less teams" outperform those with "bosses." It's very empowering and lots of research shows that these teams far outperform those with strong leaders. Companies like GE, WL Gore, Valve, Github and others talked about their examples in the Wall Street Journal last year. In...
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