Most organizations utilize performance appraisals to measure the importance of the performance of the employees. DeNisi emphasizes the performance appraisals are ways of providing feedback to the employees regarding their performance at work and the basis for decision-making for compensation increase or promotions. It implies that the performance appraisals determine ways to improve the employees’ performance. In the same way, an effective performance appraisal can result in how good a company accomplishes its strategic objectives. As a result, the proper understanding of the strategic objectives in the performance appraisals assists anybody within the organization, particularly the management to become accustomed to performance evaluations in order to convene the needs of the organization. Despite some potential forms of bias within the appraisal system, every organization has the advantages using the performance appraisals that result in a better contribution to achieving its strategic objectives and increase the employees’ performance.
The management of the organization provides the employees effective performance appraisals that increase the employees’ performance at work. Consequently, those satisfied employees working on their assigned tasks show productivity at all times. The effectiveness of the performance appraisals boosts the employees’ confidence; it encourages them to perform better for the good of the organization. Accordingly, the objective method using the goal setting theory explains that a well-motivated individual can perform and pursue measurable and challenging goals. It entails that an employee works better when the management itself assists their employees through appropriate motivation. On the other hand, Dysvik confirms that the outcomes of the employees are the product of the type of work motivation received by the employees from the management. It means that the performance of the employees varies from the effectiveness of the motivations provided to them.
Employees exert effort to do their responsibility better and they work to satisfy the expectations of the management using the feedback received from the performance appraisals. In return, the management or the employer provides the best interest for their employees. In fact, Youssef demonstrates that in order to identify job placement decisions (promotions, demotions, or transfers), the appraisal system justifies the performance of a certain employee. Evidently, the different feedback from the performance appraisals, positive or negative feedback serves as an effective motivation. As per definition, an intrinsic motivation is to perform activities for an employee’s own decision in turn to experience satisfaction during work. Thus, the motivated employee performs the task because he or she enjoys and have the interest in participation of its own reward that highlights a task-directed endeavor. Alternatively, the extrinsic motivation centers on the outcomes in which the activity leads rather than on the activity itself. In consequence, an employee performs activities with the purpose of achieving some discrete results such as awards and promotions, gaining approval, or avoiding guilt. Additionally, an employee works harder to accomplish the desired results or avoid any disapproval. After the performance appraisal process, the management or employer determined how and what motivates their employees, then they can offer the best reward or high-performance appraisal.
However, throughout the performance appraisal process, some potential forms of bias happen within the system. Bias influences the performance appraisals negatively, for example, recency bias, halo effect, central tendency, spillover effect, or personal bias directly distorts the views of the management and the organization as a whole towards a certain employee. The performance appraisal conducted by good managers should be objective, not subjective. As a result, the biased performance appraisals affect the work performance and cause misunderstanding between the manager or employer and the employee. An incorrect or inaccurate performance appraisal can result in losing one’s job; it exhibits signs of low morale and pitiful job contentment. An efficient work environment is imperatively free from any bias in the employees’ performance appraisals. Moreover, it is the responsibility of the management to eliminate any bias during the performance appraisals.
The ultimate goal of performance appraisals is to improve performance; it contributes to the achievement of strategic objectives. Specifically, the organization should refer to the different rewards intended for the employees who deserve to receive it. Through its strategic objectives because of the effectiveness of the performance appraisals, the organization has its strategic advantages over other organizations to choose the best employees to work for them. The employers are clever enough to make the best strategic objectives that every employee can benefit and all members of the organization. It is significant to consider the skills and knowledge of the employees in order to achieve the ultimate goals of the organization, productivity of the employees’ performance and globally competitive in all aspects of the business.
Reference
Andrew. (2016). 5 Types of Bias in a Performance Review. Retrieved August 24, 2016, from
http://learnthat.com/5-types-of-bias-in-a-performance-review/.
DeNisi, A. S. (2000). Performance appraisal and performance management. In Multilevel
Theory, Research, and Methods in Organizations: Foundations, Extensions and New Directions (pp. 121-156). San Francisco, CA: Jossey-Bass.
Dysvik, A. &. (2013). Intrinsic and extrinsic motivation as predictors of work effort: The
moderating role of achievement goals. British Journal Of Social Psychology , 52 (3), 412-430. doi:10.1111/j.2044-8309.2011.02090.x.
Youssef, C. (2015). Human resource management (2nd Edition ed.). San Diego, CA:
Bridgepoint Education.
