Performance Management and Appraisals

Introduction

Performance management is the continuous communication process between an employee and a supervisor. The procedure occurs throughout the year to support an organization’s strategic objectives. It includes setting objectives, clarifying expectations, identifying specific goals, feedback provision, and reviewing results. Managers use this tool to monitor and evaluate workers’ progress in the workplace. It creates an environment where people perform to the best of their abilities to produce the most effective and efficient work. Performance management precept views individuals in a workplace context, fosters a clear understanding of what is expected, and focuses on transparency and accountability.

The evaluation process allows managers to recommend new courses of action, adjust workflow systems, and make other critical decisions that help improve the business’s overall performance. The company can achieve its objectives and expected performance optimally. Continuous communication creates a healthier and more transparent work environment, hence, better accountability for every task (Baird et al., 2020). It establishes definite rules and regulations, thus creating a more transparent comprehension of what is expected from everyone. The workplace is free from stress and unnecessary pressure from the management because each worker has clarity of their duties and responsibilities. No staff works to impress their bosses since their roles are well-defined (Baird et al., 2020). If the system is properly working, the employees probably already know where the problem is, and they can efficiently work it out.

Importance of Performance Management

An organization must carry out the performance appraisal process. It helps to boost the employees’ engagement and productivity. There are high chance that engaged workers to stay longer and are committed to producing the best of their abilities in the workplace. It improves and maximizes their Return on Investment. The continuous meeting between managers and the junior staff promotes an atmosphere of support, trust, and encouragement. It also develops a good relationship between the supervisors and the team (Cappelli & Conyon, 2018). Teamwork works better in this kind of environment hence promising productivity. The organization can offer to assist individuals who are dedicated to progress in their career advancement.

The process of employee appraisal increases employee retention by encouraging rewards and recognition of hardworking workers. Lack of acknowledgment of staff who do their tasks well can be a big reason for some of them to leave and seek another job. Appreciation is vital since it promotes the morale of the employees. It also creates an opportunity to share feedback, enabling the management to plan the way forward. Poor communication in an organization can lead to a troubled inter-departmental relationship. In many entities, the management can communicate with the juniors, but it is infrequent for the employees to air their frustrations or concerns (Cappelli & Conyon, 2018). It is an effective way for everyone to exchange their opinions for the company’s benefit. The workers feel more valued when their voices and thoughts are heard.

There is clarity in job descriptions when each of the employees knows what is expected of them. The performance management process defines the roles and structure of the organization; hence, there is clarity on whom one should report to. An improper system can lead to a lack of productivity, low self-esteem among the staff, and overall poor company performance. Evaluation is a procedure that helps the management develop training strategies for their employees. The leaders can predict potential risks through consistent management and monitoring of workers. Early detection of threats means that the problems can be confronted early enough before they harm the business. Furthermore, the cost of mitigating risk is lower than dealing with the exact issue. For instance, if a manager of a specific department notices that a staff is not performing well or is a team player, the individual can be moved to a different position that does not require teamwork (Baird et al., 2020). This helps in preventing unnecessary trouble that that particular staff in that department could bring.

Three Essential Functions of Performance Appraisal

The administration performs three of the following functions, providing adequate feedback on everyone’s performance, a basis for modifying behavior toward working habits, and giving the managers data that can be used to judge future versions (Curzi et al., 2019). The performance appraisal process provides a business with a strategy that brings out the best in its employees. It acts as the pivot for effective management in an organization. The worker’s performance determines the efficiency of the other operating system in a workplace. The process involves a review of the approaches used to produce the goods or services and, therefore, should help improve the quantity and quality of work produced.

Two Reasons Why The Performance Appraisal is Essential For Employee

First, employees believe performance appraisal is essential because their hard work is rewarded. Managers use the information indicated by the managers to determine who contributed the most to the company’s growth and reward them accordingly. This motivates them and gives them the morale to work harder. Through this procedure, the reward may be a promotion or monetary, thus improving their financial ability to cater to their needs. Secondly, the workers may benefit in terms of their professional development (Bayo-Moriones et al., 2020). The process can reveal opportunities for improvement since the managers can identify the weaknesses and strengths of their employees. The company can nurture a talent they spotted during the assessment. When the need for training arises, it benefits the involved staff, thus giving them a chance to develop individually.

Two Reasons Why Employees Do Not Like Performance Appraisals

The process creates an atmosphere of stress and anxiety because most fear their challenges being flawed. Some become afraid when they hear about the procedure because it may be due to one reason or another, and they did not perform to their bosses’ expectations. They fear that they might be exposed and hence lose their jobs (Bayo-Moriones et al., 2020). The system is sometimes linked to monetary compensation, creating tension when they imagine losing their end-of-year bonuses.

There is a possibility of biasness, thus making the employees lose faith in the process. In some cases, managers tend to have personal issues with their subordinates, therefore evaluating their behavior and characteristics instead of doing it professionally. The process is then carried out with an attitude that does not benefit the improvement of the staff’s performance. This affects the personal growth and development of the worker careerwise and in the company.

Three Approaches To Performance Appraisal

The administrative appraisal approach is a method that is related to bonuses and pays rewards. Most Human Resource Systems use this criterion to determine the annual salary increment, promotions, demotions, and job offers for employees. Disciplinary actions and training programs are also ascertained through this approach (Mathis et al., 2016). Developmental appraisal, on the other hand, is linked to the feedback provided by employees to the managers during the process (Mathis et al., 2016). Strategic assessment involves the capacity of the management to coordinate the roles performed by different departments. The method measures the workers’ performance through the organizational goals and objectives (Mathis et al., 2016). The approach is believed to be the best in development since it does not provide chances of biasness. The system shows the value of workers since it depends on employees’ views to attain success. It empowers the staff, thus making them confident about problem-solving in case issues arise within the company.

Importance of Ethics in Performance Appraisal

Ethics plays a vital role in measuring employees’ performances in the workplace. The process should yield an honest assessment of the staff evaluation. There should be mutual respect between the managers and the subordinates to allow an effective procedure. The involved parties should avoid unethical practices that may cause frustrations, alienation, and cynicism among themselves (Ahmad & Umrani, 2019). Any unfavorable perceptions about the process may include politics, lack of truthfulness, and unfair treatment, which may make it ineffective and inefficient.

Conclusion

Many organizations have adopted the performance management program to appraise the work progress of their employees. Managers and the junior staff discuss the goals and expectations from the tasks given and their career development. The process assures transparency and accountability of the roles given; thus, there is an opportunity for employees and the company to develop and grow. This initiative uses traditional methods to create and measure objectives, goals, and milestones. It also aims to define an effective performance and develop a suitable process to quantify the outcome. However, the appraisal activity turns out to be an opportunity to learn because both the supervisor and the employee interact freely and can openly discuss issues that might not be discussed during working hours. Unethical practices can render the activity ineffective, thus unnecessary and time-wasting.

References

Ahmad, I., & Umrani, W. A. (2019). The impact of ethical leadership style on job satisfaction: Mediating role of perception of green HRM and psychological safety. Leadership & Organization Development Journal, 40(5), 534-547. Web.

Baird, K., Tung, A., & Su, S. (2020). Employee empowerment, performance appraisal quality and performance. Journal of Management Control, 31(4), 451-474. Web.

Bayo-Moriones, A., Galdon-Sanchez, J. E., & Martinez-de-Morentin, S. (2020). Performance appraisal: Dimensions and determinants. The International Journal of Human Resource Management, 31(15), 1984-2015. Web.

Cappelli, P., & Conyon, M. J. (2018). What do performance appraisals do? Industrial Labor Relations Review, 71(1), 88-116. Web.

Curzi, Y., Fabbri, T., Scapolan, A. C., & Boscolo, S. (2019). Performance appraisal and innovative behavior in the digital era. Frontiers in Psychology, 10, 1659. Web.

Mathis, R. L., Jackson, J. H., Valentine, S. R., & Meglich, P. (2016). Human resource management. Cengage Learning.