Performance Appraisal in Human Resource Management.

 1.    Performance Appraisal in Human Resource Management.

 

Figure 1: Performance appraisal. Source: (Sharma, 2022).

 

Every individual is different. Differences between the quality and the quantity of certain tasks accomplished by employees of the on the same job organization can be always identified. In order to identify and understand the abilities, competencies and relative merit and worth of every employee within the organization, performance appraisal is an essential tool as it is a tool which is used to rate the performance of each and every employee of the organization.

Therefore, the regular review of an employee's job performance and overall contribution to the organization can be defined as performance appraisal (Hayes, 2021).

 

Today, employees are paid to what they contribute. Therefore, the organization management pays more attention to the individual performance of employees in the organization in order to evaluate the contribution of employees towards the achievement of the organizational objectives and as a result of this, the requirement of performance management is essential to an organization. This is especially true in large scale organizations. If the performance appraisal process is formal and well-structured, it will aid the employees to have a proper understanding of their duties and responsibilities as well as management of the organization can give proper guidance to employees of the company in order to improve performance. Performance appraisals helps the organization management align the employee performance with the organizational objectives in order to make its corporate goals a success. 

 

1.1 How it works?

Various organizations around the globe use different approaches in appraising the performance of its workforce. Holding annual reviews as well as assessment sessions which are held annually, quarterly, or monthly etc. are some methods which are commonly used by many organizations in appraising performance of employees. Usage of such methods are mostly common in large scale organizations in Sri Lanka while medium and small-scale businesses use such methods less frequently. Small businesses in Sri Lanka will mostly use informal methods in assessing its employees.

 

1.2 Modern Methods of Performance Appraisal in HRM

As mentioned previously, various organizations use different methods in order to measure to the performance of its employees. 5 such methods of performance appraisal used in the modern era are, 

·      Management by objective Methods

·      360 – degree feedback

·      Psychological appraisal

·      Behaviorally anchored rating scale (BARS)

·      Ranking Method

·      General performance appraisal (Houston, 2022).

 

1.3  Objectives of Performance Appraisal 

One of most important resources to an organization today is the human resource. It is an important asset to the organization. The organization should be able to determine where its employees stand in terms of productivity and performance. Some objectives of performance appraisal are,

·      Provide Feedback. 

·      Promote or placing the right individuals on the right job.

·      To review and retain the promotional and other training programs (Management Study Guide, 2022).

·      Improve work performance.

·      Motivate high performing employees.

·      Determining overall training needs.

·      Set and measure goals (Jotform Inc., 2022).

 

Figure 2: Benefits of performance appraisal. Source: (Thakur, 2022).

 

1.4 Characteristics of an effective performance appraisal system

Factors of an effective performance appraisal system are as follows.

 

·      Clear objectives.

·      Well defined performance criteria.

·      Less time consuming.

·      Post Appraisal Interview (synergita, 2013).

·      Continuous Feedback.

·      Review Accomplishments and Goals (Mayhew, 2022).

 

References

 

Bibliography

Hayes, A., 2021. Performance Appraisal. [Online] 
Available at: https://www.investopedia.com/what-is-a-performance-appraisal-4586834
[Accessed 22 04 2022].

Houston, K., 2022. 5 modern methods of performance appraisal. [Online] 
Available at: https://www.jotform.com/blog/modern-method-of-performance-appraisal/
[Accessed 22 04 2022].

Management Study Guide, 2022. Performance Appraisal. [Online] 
Available at: https://www.managementstudyguide.com/performance-appraisal.htm
[Accessed 22 04 2022].

Jotform Inc., 2022. 7 objectives of a performance appraisal. [Online] 
Available at: https://www.jotform.com/blog/objectives-of-performance-appraisal/
[Accessed 22 04 2022].

synergita, 2013. What are the characteristics of effective performance appraisal system?. [Online] 
Available at: https://www.synergita.com/blog/what-are-the-characteristics-of-effective-performance-appraisal-system/
[Accessed 22 04 2022].

Mayhew, R., 2022. Characteristics of an Effective Performance Appraisal. [Online] 
Available at: https://smallbusiness.chron.com/characteristics-effective-performance-appraisal-933.html
[Accessed 22 04 2022].

Sharma, K., 2022. Performance Appraisal. [Online] 
Available at: https://www.educba.com/performance-appraisal/
[Accessed 22 04 2022].

Thakur, M., 2022. Benefits of Performance Appraisal. [Online] 
Available at: https://www.educba.com/benefits-of-performance-appraisal/
[Accessed 22 04 2022].