performance appraisal
CHAPTER ONE
Introduction
According to Khan (2009) the essence of management system of an organization lies in the system of performance appraisal adopted in that organization. This, in turn, reflects the extent of the individual contributions and commitment of the employees in different hierarchical levels towards the achievement of organizational goals. Generally, it is admitted that an effective performance appraisal can lead an organization to take strides towards marked success and growth. Conversely, an ineffective performance appraisal system can seal the fate of an organization by creating chaos and confusion from top to bottom in the administrative hierarchy. As a consequence, the chances of success and growth of that organization are doomed.
Background of the study
Dechev (2010) explains that the evaluation of job performance have been called by many different names throughout the years – a tool of management, a control process, a critical element in human resources allocation and many others. The first appraisal systems were just methods for determining whether the salary of the employees in the organizations was fair or not. Later, some empirical studies have shown that reduction or future pay were not the main effects of the process. Performance appraisal was recognized for a tool for motivation and development in the United States in the 1950s. (Cardy & Dobbins 1994)
The practice to formally appraise workers has existed for centuries, but the interest in the area has grown rapidly in the last forty years. The first recorded appraisal system in industry was Robert Owen’s use of character books and blocks in New Lanark mills in Scotland around 1800. The character book recorded each worker’s daily report. The character blocks were colored differently on each side to represent an evaluation of the worker ranging from bad to good and they were displayed in each employee’s workplace. Owen was quite impressed by the way the blocks improve the
Introduction
According to Khan (2009) the essence of management system of an organization lies in the system of performance appraisal adopted in that organization. This, in turn, reflects the extent of the individual contributions and commitment of the employees in different hierarchical levels towards the achievement of organizational goals. Generally, it is admitted that an effective performance appraisal can lead an organization to take strides towards marked success and growth. Conversely, an ineffective performance appraisal system can seal the fate of an organization by creating chaos and confusion from top to bottom in the administrative hierarchy. As a consequence, the chances of success and growth of that organization are doomed.
Background of the study
Dechev (2010) explains that the evaluation of job performance have been called by many different names throughout the years – a tool of management, a control process, a critical element in human resources allocation and many others. The first appraisal systems were just methods for determining whether the salary of the employees in the organizations was fair or not. Later, some empirical studies have shown that reduction or future pay were not the main effects of the process. Performance appraisal was recognized for a tool for motivation and development in the United States in the 1950s. (Cardy & Dobbins 1994)
The practice to formally appraise workers has existed for centuries, but the interest in the area has grown rapidly in the last forty years. The first recorded appraisal system in industry was Robert Owen’s use of character books and blocks in New Lanark mills in Scotland around 1800. The character book recorded each worker’s daily report. The character blocks were colored differently on each side to represent an evaluation of the worker ranging from bad to good and they were displayed in each employee’s workplace. Owen was quite impressed by the way the blocks improve the