Pros and Cons of Performance Appraisals
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Performance appraisal is to evaluate an employee’s performance within an organization by concentrating on identifying, measuring and developing job performance standards. This method serves as a systematic and periodic process that assesses the employee job performance and productivity against their employer’s goals and objectives. Must be remembered, “performance reviews might not ever be fun [within an organization] but they can be effective and powerful [in] ways of creating more loyalty among team members when they’re done right” (Jackson, 2012). That is to say, the paper will entail the strategic advantages of performance appraisal, potential forms of bias within the appraisal system as well as how performance appraisal can contribute to the achievement of strategic objectives. Overall, performance appraisal within an organization is an effective way to increase employee’s job performance and help employees with their own personal success.
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The strategic advantages of performance appraisal are alignment, optimized performance, succession planning and feedback. HR benefit of using this strategic advantage called alignment in order to align employee performance within an organization. Aligning employee performance is an organizational goal to evaluate how employees, job performance benefits and how these employees should fulfill that particular role. With attention to “carefully [analyze] and review of job descriptions to align duties and responsibilities of a given job to its [employees departments] and ultimately with [organization] objectives” (Kokemuller, 2017). Another strategic advantage that employer’s use to evaluate and motivate employees to better perform within the organization is optimized performance. Optimize performance gives the employer’s opportunities to praise their employees for good job performance by reaching the organization objectives successfully. In like manner for employers to challenge unsuspected employees for a chance to grow and develop better job performance skills for the purpose of to reach the organization objectives through a set of standards of expectation to accomplish it.
Equally important strategic advantage that employers evaluate employees’ opportunities to discuss career objectives and set goals to attain them is through succession planning. Succession planning helps the organization to identify the qualifies candidates to take over that key position when that employee retires or leave. In case the strategic and well-planned evaluations which conducted annually or periodically by the organization upper management to discuss the potential skills and experience they see within the employee to perform the necessary task for that identified role is open. Lastly, the strategic advantage that offers the organization “a chance to find out what employees need in term of support and resources is feedback. An effective measure for an organization to “[give] feedback to the [number of employees] with the purpose of encouraging them to correct any [of their weaknesses] in their performance to stay the course of accomplishing [them above average]” (Dessler, 1999). Given that the organization allows their employee’s opportunities to ask questions, express concerns and suggestions to a greater understanding of how to better equip them to deliver the best performance possible. In view of the organization, upper management will appear humble and willing to find out what employees need to reach the organization objectives that they happen to not have to achieve them. As a can be seen, the strategic advantages of performance give employees better job performance evaluations within the organization to reach their goal successfully.
The potential forms of bias within the appraisal system are contrast, halo, horn, leniency, and recency. First common performance appraisal bias is the contrast that “occurs when the manager compares an employee’s performance to the other employees instead of the company standards” (Lauby, 2013). The goal or standard that has been set is a problem in regard to a high-performance employee might end up at the bottom even though he or she is exceeding company standards. Second, common performance appraisal bias is a halo is an employee that is rated highly in all areas of their evaluation because of the one thing he or she really great at doing. Behind the scenes that particular employee causes confusion or disorder in the organization and the other employees do not respect him or her for it. Third, common performance appraisal bias is a horn (i.e. the flip side of the halo) an employee that is rated poorly in all areas of their evaluation because of the one thing he or she really bad at doing. For instance, the HR administrative assistant who is great at everything but failing. Therefore, the organization has to hire a temp to get the filling caught up due to the HR administrative bad job performance putting the filing off till later.
Fourth, common performance appraisal bias is leniency is a team leader that gives everyone on his or her team a satisfactory rating. In view of the team leader is burned out and that review does not require any written support statement. Despite the team leader not required giving a written support on its reviews would affect the employee that has poor performance that needs correcting. Fifth common performance appraisal bias is recency is “the employee’s most recent behavior becomes the primary focus of the review” (Lauby, 2013). In the event that a poor performed employee does a task well at work than their past performance is forgotten. But a high performed employee does one mistake, then it weighs done their review greatly. Ultimately, the potential forms of bias within the appraisal system need to rid of altogether so that employees be evaluated fairly in the organization.
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The morale, budgeting tools within the organization and a set of goals are, how performance appraisal can contribute to the achievement of strategic objectives. First, morale is an important factor in creating a productive workforce in the organization. Including “to [identifying] the weak points in [the employee’s] job performance and then [help he or she] to create a plan to combat that weakness” (George, 2018). On the positive side of this course of action is the upper management tone with employees by assisting them with their development within the organization and its goals. Second, budgeting tools is “the analysis of performance appraisals, the company can determine which employee is due for a raise and which employees are not [in the year’s budget]” (George, 2018). For instance, the money associated with having the employee terminated is put back into the budget by the same token, replacing the terminated employee is a factor as well. Seeing that the organization needs a budget tool to make decisions that will benefit their strategic goals in the long run. Lastly, set goals is a strategic objective for organizations to reach their goals. The performance evaluations are discussions between the employers and employees about professional development and the strategic goal is to measure the success of the employee. In effect, the employee-manager relationship improves greatly in the workplace. All things considered, the morale, budgeting tool within the organization and a set of goals are, how performance appraisal can contribute to the achievement of strategic objectives in a company.
When an employee performance appraisal presents a clear standard of expectations that are arranged within the organizational goals; employee job performance will increase greatly. alignment, optimized performance, succession planning and feedback are the strategic advantages of performance appraisal that would allow employees better job performance evaluations within the organization to its goal. Contrast, halo, horn, leniency, and recency are the five potential forms of bias within the appraisal system that needs to focus on the employees evaluated fairly in the organization and free of bias. Lastly, the morale, budgeting tool within the organization and a set of goals are, how performance appraisal can contribute to the achievement of strategic objectives in a company to become successful. All in all, performance appraisal within an organization is an effective way to increase employee’s job performance through the company strategic objectives and helping employees with their own personal success without bias in their evaluations.
- Ayers, R. S. (2015). Aligning Individual and Organizational Performance: Goal Alignment in Federal Government Agency Performance Appraisal Programs. Public Personnel Management, 44(2), 169-191 23p. doi:10.1177/0091026015575178
- Dessler,Gary (1999). Human Resource Management: essentials of management, Prentice Hall.
- Jackson, E. (2012). Ten Biggest Mistakes Bosses Make In Performance Reviews – Forbes. Information for the World’s Business Leaders – Forbes.com. Retrieved from https://www.forbes.com/sites/ericjackson/2012/01/09/ten-reasons-performance-reviews-are-done-terribly/#37fd38635ee0
- Lauby, Sharlyn (2018). Overcoming 5 Common Performance Appraisal Biases. HR bartender. Retrieved from https://www.hrbartender.com/2013/training/overcoming-5-common-performance-appraisal-biases/
- N., George. “Strategic Objectives in Performance Appraisals.” Small Business – Chron.com, http://smallbusiness.chron.com/strategic-objectives-performance-appraisals-1915.html. Accessed 29 July 2018.
- Neil, Kokemuller (2017). What Are the Strategic Benefits of Performance Appraisals? bizfluen. Retrieved from https://bizfluent.com/info-12002472-strategic-benefits-performance-appraisals.html
- Youssef-Morgan, C. (2015). Human resource management. (2nd ed.). San Diego, CA: Bridgepoint Education. Retrieved from https://content.ashford.edu/books/AUBUS303.15.1
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