Managing Employee Performance
Q.”Assess the use of 360-degree appraisals in performance management”
Performance management is the process of management that contributes to the effective management of individuals and teams to achieve high levels of organizational performance. Some see performance management as performance related pay schemes and others as the performance appraisal systems. In simple terms, performance management provides the means for people to improve their performance or apply their abilities more constructively.
An appraisal is the business tool used at a regular basis to measure an employee’s performance. It is an opportunity to take an overview of a specified period keeping a record of what has been achieved. Appraisals are followed by ratification of objectives for the next period. They are also sometimes used as motivational tools.
This process determines the measurement of performance and helps in the development of employees. The main objective in this process is to improve the performance of individuals to ultimately improve the efficiency and productivity of the company. Appraisals subjectively assist post holders to understand the accountabilities and performance standards of a company. The process provides the opportunity into looking at what the company has achieved and what it can achieve. The tool helps set objectives for the next period in hopes of achieving a higher sales target for example.
Performance appraisals benefit post holders as they reveal the good and bad aspects of a given job. They improve the relationships and moral within the organisation. For an organisation performance appraisals acquire information about employees, information for development and assists human resource needs more accurately
for example, promotions, bonuses, perks, individual payment schemes, etc.
There are different types of performance appraisals, they are as follows
Appraisal by immediate superior, this kind of appraisal system consists of the immediate manager to conduct the appraisal and passing the report onto the next management level. This is the simplest and quickest form of carrying out an appraisal; however it may turn out to be ineffective as rise of limitations such as not agreeing to objectives may occur.
Self-assessment appraisal systems, this method consists of the person to evaluate his own performance before the meeting actually takes place. In this case the interviewee becomes a more active participant and there are more opportunities to be sought.
Peer appraisal systems; this method involves the interviewee’s colleagues providing assessments based on the criteria selected. Peers are often able to identify crucial information on performance within a team.
360° appraisals; the 360° refers to the surrounding of the employee. Many people are involved in the appraisal process, including immediate subordinates, peers, senior management and customers.
360° appraisal systems are also known as ‘multi-source assessment’. The interviewee in each case is assessed by a number of various people in the organization; including the customers and colleagues alongside immediate management and subordinates makes it a proper 360° appraisal.
360° appraisals are defined as:
“The systematic collection and feedback of performance data on an individual or group derived from a number of stakeholders.” – Ward (1997)
The primary use of 360° appraisal systems in performance management is to form development programmes and enhance leadership capabilities. In development programmes 360° feedback is used when persona and behaviour are a priority. 360° appraisal systems emphasize on the current performance within a firm. This appraisal system is used mainly by organizations as it recognizes that a top down assessment would have many limitations because managers can not appreciate all the aspects of behaviour and performance. Positive feedback...
Bibliography: • Michael L. Nieto (2006). An introduction to Human Resource Management. UK: Palgrave Macmillan. 143-160.
• Michael Armstrong (2002). Employee Reward. 3rd ed. UK: CIPD. 390-395.
• Michael Armstrong and Angela Baron (2005). Managing Performance. UK: CIPD. 120-135.
• Ward, P. (1997) 360 degree feedback and organizational culture. London, Institute of personnel and development.
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