The continuous development improvement of human resource potential requires a successful performance system. Schermerhorn (1999, Pg. 250) defined Performance Management System as a system that ensures performance standards and objectives are set, that performance is regularly assessed for accomplishments and that actions are taken to improve performance potential in the future. The process of formally assessing someone’s work accomplishments and providing feedback is performance appraisal and it serves three basic purpose in maintenance of a quality workforce i.e.
a) To assess past performance which intended to let people know where they stand relative to performance objectives and standards.
b) To assess training and development needs. This intended to assist in their training and continued personal development.
c) To assess future potential for organizational and personal growth.
Other than the above, employers can ride on the performance appraisal event to provide feedback to the employees regarding his or her past performance and to help them to improve their job performance. This exercise also provides opportunity for employees to express their feelings about the job and to increase interpersonal communication. From this it can stimulate interest in self-development for the purpose of greater personal development. Beside, performance appraisal will produce a databank of information can be used for financial and non-financial rewards.
Performance management approaches are generally describe within the context of Managing By Objective (MBO) framework. MBO programs is an awareness that appraisal must be anchored to function like objective setting, communicate expected result, establish time frame and how to accomplish objective (Nankervis, Compton & McCarty, 1999, Pg. 399 – 400).
Within an MBO system the performance management process pertains to the management of
Bibliography: Heyel, C., (1958), Appraisal Executive Perfomance, Amacom, New York Ivanchvich, J., (1998), Human Resource Management, 7th Edition, McGraw Hill, New Jersey. Kaplan, R. S. & Norton, D. P., (2001), Harvard Business Scholl Publishing Corporation, Boston. Lockett, J., (1992), Effective Performance Management: A Strategic Guide to Getting the Best from People, Kongan Page Limited, London. Nankervis, A., Compton, R. & McCarty, T., (1999), Strategic Human Resource Management, 3rd Edition, Nelson, South Melbourne. Schermerhorn, J. R., (1999), Management, 6th Edition, John Wiley & Son Inc, New York. Sherman, A., Bohlander, G. & Snell, S., (1998), Managing Human Resources, 11th Edition, South-Western College, Ohio. Thompson, A. & Strickland III, A., (2001), Strategic Management Concept and Cases, 12th Edition. McGraw-Hill Irwin, New York.