Performance Appraisal Importance in HR Management


The human resource department plays a significant role in an organization’s success. Employees from the most important asset in a company. Performance appraisal, which involves discovering, evaluating, and promoting human performance in a company helps in accomplishing an organization’s success. For companies to cope with the competitive market, they need to identify and protect their workforce needs.

Human resource managers need to examine previous trends while at the same time assessing the existing developments and future expectations for their workforce. Prior to making any decisions that can affect employee commitment, exhaustive information must be collected and/or evaluated using the job analysis technique. Job analysis forms the hub in the management of workers in any organization that aspires to succeed. Considering the importance of job analysis in HR management, this paper discusses the importance of incorporating job analysis in the performance appraisal system. In addition, the paper will discuss the need for having an all-rounded performance appraisal system.


Job analysis refers to the structured examination of jobs to determine the duties and tasks that are linked to a given job or a collection of jobs. The importance of job analysis in HR management cannot be ignored. Job analysis forms the foundation of future decisions. It was discovered in the early 1900s. It has rapidly grown as an essential management tool. In the past, most studies focused on investigating the empirical facets of job analysis. These studies have helped human resource managers to initiate efficient techniques and processes to prepare accurate and helpful job information. As the paper reveals, with the growth of job analysis as a management tool, more studies have focused on the significance of job analysis in organizational success.

Why Job Analysis is Important

Several companies in the United Arab Emirates (UAE) have utilized job analysis in the performance appraisal system. The UAE is one o the fastest growing economies in the Middle East. Besides having a rich oil industry, it is also flexible in implementing creative management concepts and models that are likely to help it to expand its economy (Siddique, 2004).

The incursion of multinational firms in the country that has a small population has encouraged companies to initiate mechanisms that can help them to enhance the performance of their human resources. Companies in the UAE have found it important to utilize job analysis because the UAE is a developing country that has rich a market and labor force. Indeed, analysts such as Cucina, Martin, Vasilopuolos, and Thibodeuax (2012) have noted that HR managers’ roles, which include recruitment and selection of workers and participation in training and performance appraisal, require them (managers) to have an extensive understanding of a given job. Understanding of jobs should not be limited to HR administrators.

It should be extended to the jobholders to enhance the efficiency of HR management. Job analysis helps HR managers to have job comprehension. Hence, it is crucial to notice the close link between job analysis, performance appraisal, and the general performance of a firm (Cucina et al., 2012).

Companies usually use performance appraisal systems to determine individual worker performance. To determine the performance, the immediate supervisors of the employees usually conduct job evaluation and worker assessment. This process helps the company to get the actual performance of a jobholder. The information from the job appraisal helps the company to make decisions that relate to retention, demotion, promotion, and salary evaluation, among other human resource issues. Thus, as Cucina et al. (2012) assert, performance appraisal is a delicate process that must be conducted with accuracy and diligence.

Job analysis allows supervisors and employees to conform to what their duties entail. It becomes apparent that job analysis makes performance appraisal a more effective process because it (job analysis) helps the HR team to identify the duties that worker ought to have done in his/her workplace. Using this information, a firm can prepare an assessment standard and rank workers according to their degree of performance. Furthermore, jobholders cannot claim that they are oblivious of the duties they should do since the company informs them of their duties through job analysis (Cucina et al. 2012).

According to Siddique (2004), the characteristics of various jobs are being transformed by the development of technology, machinery, globalization, and policies. Moreover, the increased competition has made it vital for companies to have a sharpened firm competence. The quality of employee service has been one of the distinguishing factors that can make an organization outwit its competitors. Thus, getting the right people for a job and retaining their expertise is a great focus for most companies.

However, most companies have not established a working performance appraisal because of failing to utilize the most effective design. Most often, workers in the UAE do not know what is required of them. Whenever their employers assess their presentation, they consider the performance ineffective. A suitable performance appraisal design is required for any company that needs to register impressive performance from its workers. A valid performance appraisal system should be designed in a manner that employees are charged and appraised based on their behaviors and results. After establishing the goals and objectives of the organization and individual goals that each worker is required to accomplish, the job details should also be stated for each employee. This specification of the job makes it possible to evaluate the results and behavior of all employees (Siddique, 2004).

The benefit of a performance appraisal system that accommodates job analysis is that it helps supervisors to monitor the workers under the administration, as they know the expected behavior and results. Moreover, job analysis also improves performance among employees since they are aware of the responsibilities they should accomplish in exchange for some rewards, as stated in the performance appraisal plan. Studies that have been conducted in the UAE have confirmed the importance of job analysis-based performance analysis (Siddique, 2004).

According to Siddique (2004), data from 148 UAE companies reveals how firms that have dynamic job analysis culture can have a proper HR administration, a healthy company atmosphere, and an impressive monetary performance. Moreover, regardless of the nature of the company such as size, period of operation, and share in the market, creative HR traditions such as job analysis assures UAE companies of competitive advantage in their areas of operation. Nonetheless, the stiff competition in the UAE market will compel companies to restructure their techniques of job analysis to keep in touch with the advancement in technology (Siddique, 2004).

According to Cucina et al. (2012), job analysis forms a special part of performance appraisal and that companies should strive to embrace it. It not only informs employees of their duty but also keeps them aware of what is expected. It also helps supervisors to know how to monitor the behavior and performance of their workers. Furthermore, the significance of job analysis is not limited to performance appraisal. It also benefits the HR department in terms of recruitment and selection processes and the preparation of compensation systems. Thus, companies need to incorporate in their performance appraisal systems.

Multifaceted/All-Rounded Performance Appraisal

Companies have adopted various methods that the HR department can use to assess employee performance. The 360-degree performance appraisal is one of the contemporary techniques that have also been adopted by some companies in the UAE. Organizations that apply all-rounded performance appraisals report several benefits and shortcomings that managers need to consider prior to introducing the technique in their HR management system. Overall, the technique should be embraced since its benefits outweigh its shortcomings.

The 360-degree feedback is expected to express the goals and objectives of a firm, as well as the personal goal that every worker should accomplish to attain the company’s objective. This technique is, at times, mistaken for other performance appraisal techniques. However, it has a clear distinction from other methods. Unlike other techniques, the main role of a multifaceted technique is to enhance the ability of every employee, as reflected in his or her general performance. An all-rounded performance appraisal allows supervisors to monitor their employees. It also allows workers to supervise their HR managers. Besides, customers are in a position to monitor the supervisors and employees. This performance appraisal strategy comes with various merits and limitations (Snell, Morris & Bohlander, 2015).

A multi-faceted system creates a platform for every employee to contribute to the attainment of a firm’s objectives. Consequently, it promotes awareness and healthy competition among staff members. Employees strive to utilize their full potential to accomplish their individual goals together with those of their departments to retain a good reputation of their companies. Moreover, since information is collected from the employees, supervisors, and clients, workers stand a chance to create a good rapport not only among each other but also between them and customers. Snell et al. (2015) observe how supervisors cannot treat their junior workers well in fear of facing the consequences of their actions.

A multi-faceted system also provides various dimensions for workers to understand their performance and/or areas where they need to improve. This appreciation leads to multi-faceted employee growth. Since employees have a proper interpersonal association with their seniors and clients, the weaknesses that come from the seniors and clients can be incorporated in the training program so that each employee can rectify his or her flaws (Leonard & Trusty, 2015).

Furthermore, the company is well placed on synchronizing the efforts of the employees towards its success. While the 360-degree feedback seeks to build the individual skills of every employee, the ultimate goal is that its impact is reflected in the improved productivity of the company. The evaluation of the employees is usually based on how they contribute towards achieving the organizational goals. Thus, while prescribing the individual goals for each employee, the HR strives to ensure that all workers attain the organizational goals. Moreover, identifying the workers’ weaknesses and taking them through a training program to eliminate the flaws implies that an improvement in their expertise will enhance the general performance of the company (Leonard & Trusty, 2015).

A multi-faceted performance appraisal also enhances the quality of services that are offered to consumers. Since customers’ input is taken seriously, it helps the company to understand their desires. The company also devises ways of accomplishing them. If customers are impressed, the company can use the views to enhance their performance. Furthermore, customers can be assured of good service delivery because employees are aware that how they handle their customers will be reflected in their performance appraisal report and eventually affect the rewards that they get from the organization (Leonard & Trusty, 2015).

Commentators such as Snell et al. (2015) have also noted that it helps senior management to make useful HR decisions. Since several observers appraise employee performance, the results help managers to make decisions based on credible qualitative data. An all-rounded performance appraisal is better than the traditional performance appraisal systems. In fact, it seals the loopholes through which supervisors may favor or bully their juniors in the process of preparing their performance reports (Leonard & Trusty, 2015).

According to Snell et al. (2015), despite the advantages of an all-rounded performance appraisal plan, it has several limitations that have made various companies in the UAE remain hesitant to utilize it. Although the UAE is always flexible in terms of trying new ideas, it is indisputable that some UAE companies are disinclined to the adjustments and challenges. Some demerits of multi-faceted performance appraisal are elaborated in the subsequent paragraphs.

Junior workers often fear being reprimanded by their seniors and their colleagues if they give negative opinions about them. While the intention of the executives is to improve the good interpersonal relationship, all-rounded feedback may end up creating unhealthy working relationships, which may eventually affect the firm’s performance. Furthermore, since this method is based on people’s opinions, it is likely to lead to erroneous conclusions. People often hold divergent views since human minds do not operate in unison. This observation implies that employees are likely to given different opinions about a supervisor and vice versa. Taking such views without proper corroboration will only lead the management to make misleading judgments (Snell et al., 2015).

Snell et al. (2015) assert that an all-rounded performance appraisal only addresses the individual employee performance and that it does not consider other factors within the company that may influence the performance. Hence, a company may solve the weaknesses of the staff members but fail to notice other internal factors such as labor costs, among other things. As a result, the efforts of the management may be futile because organizational performance may remain stagnant in the process of improving individual performance. It also appears to be unfair to appraise the performance, particularly in the case of junior workers. Employees lack adequate skills on how to assess the performance of their managers. Moreover, they do not have control of their managers. Thus, they cannot question certain actions. Thus, their evaluation is only based on views, some of which may be erroneous (Leonard & Trusty, 2015).


Performance appraisal remains an essential practice in the HR department that helps organizations to maintain a competitive advantage over their competitors. However, a number of companies have not been able to develop proper performance appraisal strategies. A UAE-based study reveals that incorporating job analysis in the performance appraisal system design leads to remarkable organizational success. Furthermore, a multi-faceted performance appraisal plan has been shown to improve organizational performance. Nonetheless, it has several limitations that companies should address.

Reference List

Cucina, J., Martin, R., Vasilopuolos, L., & Thibodeuax, F. (2012). Self-Serving Bias Effects on Job Analysis Ratings. Journal of Psychology, 146(5), 511-553. Web.

Leonard, E., & Trusty, K. (2015). Supervision: Concepts and Practices of Management. Massachusetts, MA: Cengage Learning. Web.

Siddique, M. (2004). Job analysis: a strategic human resource management practice. International Journal of Human Resource Management, 15(1), 219-244. Web.

Snell, S., Morris, S., & Bohlander, G. (2015). Managing Human Resources. Massachusetts, MA: Cengage Learning. Web.

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