Performance appraisal is the process of reviewing and discussing an employee’s performance of the responsibilities and duties assigned him/her in an organization. Performance appraisal is based on results and performances obtained by the employee in his job and not on his personal characteristics. It measures the employee’s accomplishments and skills and is a means of identifying areas that require improved performance towards attaining higher professional growth. Furthermore, performance appraisal can be defined as the process where the relative worth of an employee is obtained, analysed and recorded. The focus is to measure an employee’s performance, if found wanting, he/she is encouraged to improve, and if found worthy, he/she is encouraged to keep the flag flying. It is often employed as a tool to reward the employee’s performances. In a way, it reviews and assesses in a systematic way, an employee’s performance under a period in review and ultimately plan for the future. Hence, his overall contributions towards achieving the total goals of the organization are evaluated. It should address the employees total development, not only skills needed for the next promotional exercise or skills required to maintain on a particular job. Appraisals should not be discriminatory, be it on the basis of age, sexual orientation, gender, religion, race and disability. The moment it discriminates, it has lost its intended use.
-To review an employee’s performance over a specified period of time.
-To help the organizations management exercise control of the members of staff.
-To review the gap between the desired and the employees actual performance.
-To diagnose the weaknesses and strengths of the employee with a view to training, retraining and developmental needs for the future.
-To strengthen communication and relationship between the employees and management.
-To give feedback to employees pertaining to their past performance.
-To reduce employee’s grievances.
-To provide information that will assist other decisions of the organisation.
-To provide clear responsibilities and what is expected to be performed by the employees.
-To scrutinize how effective the other functions of the human resource department of the organisation such as selection, recruitment, training and development is faring.
ADVANTAGES OF UNDERTAKING PERFORMANCE REVIEWS:
-A record of performance in certain period is provided by performance appraisals.
-Performance appraisal gives room for the manager and the employee to meet up and talk about the employee’s performances.
-Performance appraisal gives room for a meeting between the employee and manager to discuss, clarify issues and expectations with the manager.
-Performance appraisal gives the employee information on their performance and to what extent they met their targets and quotas.
-Performance appraisals grant the chance to plan about the coming year and draw up employee goals.
-Performance appraisals can become motivational when complemented with good compensation and reward system.
BIAS WITHIN THE APPRAISAL SYSTEM:
There exist forms of bias within the appraisal system. They are: Horns and Halos effect, Purposeful bias, appraisal bias and self bias.
Horns and Halos effect- It is very common in a lot of business situations. It is noted that some managers are of the habit of assuming that a specific employee is naturally bad or good at his/her job. This view is borne out of personality clashes, discrimination and other factors asides job performance. The manager is always looking for information to back up his biased viewpoint about an employee, rather than the data on the employees form speaking for itself. Its influence on performance appraisals and other reviews are monumental.
Purposeful Bias- In some rare cases, the manager’s bias is done intentionally. It is done purposefully when a particular manager feels threatened by talented employees that display the zeal and ambitions to reach the apogee of their careers and businesses faster than their peers. Therefore, to protect his own position, inadequacies and shortcomings from reaching his own superiors, such a manager score employees low on the appraisal scores.
Appraisal bias- Sometimes, the appraisals are biased towards a certain position. A lot of companies utilize just one type of form , that particular form may not be appropriate for all the employees. For example, when a form emphasizes communication and creativity, it serves as extra points for employees in marketing while those in production are bound to score low on those points.
Self Bias- Sometimes when an appraisal reveals an employee to be performing well, the employee would continue in that vein and even perform better. Also, if the review reveals poor performance, the employee will continue in that vein. The employee, changing to fit the perception created by the appraisal.
Appraisal systems can achieve specific objectives when those being appraised believe in the appraisal system and results. Which in essence means bias is reduced to the barest minimum and those appraised are quite satisfied with the process and results.
Also, when appraisal results are linked to rewards, incentives and compensation, strategic goals are obtained faster.
In conclusion, performance appraisal which is the annual score card of an employee in an organization can lead to achievement of an organizations strategic goals and objectives when done with minimal bias and directly linked to rewards.
Also, it improves an organizations performance, improves their productivity and maintains employee retention and loyalty.
A.Chapman (2012):Performance appraisals and sample appraisal form templates and 360 degree appraisal free tips. http://www.businessballs.com/performanceappraisals.htm
2010: Introduction to Performance Appraisal. http://www.performance-appraisal.com/intro.htm
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2012: Advantages and Disadvantages of Performance Appraisals.http://kathyclark.hubpages.com/hub/Advantages-and-disadvantages-of-performance-appraisals
2012: What Types of Bias Exist With Performance Appraisals?http://www.ehow.com/info_8183399_types-biases-exist-performance-appraisals.html
2012: Benefits of a Performance Management System.http://www.managementstudyguide.com/benefits-of-performance-management-system.htm
