Article Analysis about Performance Appraisal
Why Was the Performance Appraisal First Established? What Was Its Purpose?
The performance appraisal was first established because labor union contracts required annual reviews to allow employers to give raises, merit-based bonuses, and other increases to employees. These increases were to be above an individual employee’s union contract. Dijk and Schodl (2015) argue that performance appraisal is akin to a systematized schedule used for compensating individual employees in proportion to the value of their services. Do you need help with your assignment ? Get in touch with us at eminencepapers.com.
The primary purpose of performance appraisal was to give employees big-picture feedback about their work. In this way, employers could justify pay increases and other merit-based bonuses. Additionally, it plays an important role in creating a plan for employers and employees. To encourage extended services and reduce the turn-over rate. In effect, the performance appraisal standardized the practice of paying several different rates to employees at the same job or in the same occupation,
Problems With Annual Review and the Solution
A key challenge regarding annual performance reviews is the inherent difficulty in the task of measuring performance. Foremost, the feedback becomes broader and less detailed with the lapse in time, further making it difficult to keep records of events. As a result, managers cannot apply the correct and consistent evaluative standards. Another challenge with the annual review is that it lacks objectivity, and employees may perceive that they are being evaluated unfairly. At some point, employees may be evaluated based on their gender, race, or how well they get along with the manager. Relatedly, comparing employees with their colleagues rather than their past performance is a source of bias. For example, what one manager considers a higher rating might get a low rating from a colleague. The concept of clashing goals is another problem that bedevils annual performance appraisal. A worthwhile explanation behind this case is that while employees are usually proud of their work, negative reviews might hurt their morale. Habitually, managers use annual reviews to identify individual weaknesses and salary administration since organizations often frown upon uniformly positive reviews.
Overcoming the aforementioned challenges in the performance appraisal requires managers to ensure workers’ reactions are incorporated into the management. In the face of inaccurate and biased scales, employees are often quick to react in a way that adversely affects their future performance (Dijk & Schodl, 2015). Ensuring that their reactions, such as commitment, acceptance, and acceptance of the appraisal, are addressed accordingly could ensure that an organization achieves performance review goals. For instance, a company could make its appraisal system free from political interest, free, and reliable. Therefore, focusing on employees’ motivations and reactions could help overcome the challenges of the appraisal system.
Performance Review With the Best Feedback
The 360-degree practice provides the best feedback. This performance review form utilizes perceptions about an employee’s behavior and its impact on the whole organization. Kanaslan and Iyem (2016) acknowledge that the 360-degree is the most multi-source feedback assessment tool. The questionnaire feedback used in this type of review contains input from an individual, supervisor, and peers. Drawing feedback from multiple sources increases reliability, fairness, and acceptability.
Relationships Between Performance Review and Compensation
The relationship between performance appraisal and compensation is based on the company’s need to determine which workers have contributed most to the firm’s growth to reward top performers. According to Yulius and Yulius (2019), performance is often measured against factors such as knowledge, dependability, leadership ability, and quantity of output. The management usually sets the key parameters that determine the quality of performance in relation to work. Workers who have performed optimally per the set criteria are rewarded with wage adjustments, salary increases, and other bonuses. In this way, employees’ job performance progresses within the rate range for their jobs based on merit, entailing increasing technical proficiency and individual ability.
Three Companies and What Compensation Perks They Provide Their Employees
Companies that have redesigned their performance appraisal systems include General Electric (GE), Adobe, and PricewaterhouseCoopers (PwC). Christiansen (2015) observes that the GE Company has shifted from the traditional annual reviews and instead focuses on other methods to evaluate their workforce. Notably, the firm has adopted performance-tracking apps to revamp its rating systems. Such tools have proved to be successful performance management systems that help evaluate and improve both employees’ and the company’s performance against the pre-established parameters. In the case of Adobe, the company scrapped off its annual performance review format. Instead, the company implemented a more frequent and less formal check-in” process (Burkus, 2016). At least once a quarter, managers and employees meet for check-in discussions, covering three main topics: expectations, feedback, and growth and development. Such sessions allow the staff and managers to strategize about both individual and company growth, progression of career paths, and the need to improve in the current role. The programs provide employees with the required resources and for performance improvement and professional growth. In the same vein, Cappelli and Tavis (2016) note that PwC changed its performance management program to focus on driving performance. Notably, the company’s program incorporates compliance and audit review findings as input into rewards, performance, and promotion decisions in specific business units. A wide array of technological changes that continue in the firm are the main reason behind the change of strategies and meaningful individual performance programs.
The Best Performance Appraisal Method
In light of the research studies, I think that the best performance appraisal method is the regular check-ins adopted by the high-tech giants. These sessions offer employees the opportunity to identify their weaknesses without negative criticisms, ultimately increasing their morale and job performance. In addition, by coming together as the staff and managers, the program helps workers and their employers to create plans for development through additional training and increased responsibilities. Therefore, organizations should strive to implement regular monitoring and review rather than annual performance appraisals to drive performance.
References
Burkus, D. (2016). How Adobe scrapped its performance review system and why it worked. Retrieved from https://www.forbes.com/sites/davidburkus/2016/06/01/how-adobe-scrapped-its-performance-review-system-and-why-it-worked/?sh=212e310c55e8
Cappelli, P., & Tavis, A. (2016). The future of performance reviews. Retrieved from https://hbr.org/2016/10/the-performance-management-revolution
Christensen, S. (2015). 3 Ways performance reviews are getting revamped – For the better. Retrieved from https://www.forbes.com/sites/learnvest/2015/09/25/3-ways-performance-reviews-are-getting-revamped-for-the-better/?sh=7a64e03b53c0
Dijk, D., & Schodl, M. (2015). Performance Appraisal and Evaluation:The Guilford Glazer faculty of. International Encyclopedia of the Social & Behavioral Sciences, 17, , 716–721. doi: 10.1016/B978-0-08-097086-8.22034-5
Kanaslan, E., & Iyem, C. (2016). Is 360-degree feedback appraisal an effective way of performance evaluation? International Journal of Academic Research in Business and Social Sciences, 6(5). doi: 10.6007/ijarbss/v6-i5/2124
O’Connor, K., Arnold, J., & Maurizio, A. (2010). The prospect of negotiating: Stress, cognitive appraisal, and performance. Journal of Experimental Social Psychology, 46(5), 729-735. doi: 10.1016/j.jesp.2010.04.007
Yulius, Y., & Yulius, Y. (2019). Training, compensation, and job performance: A critical review of their relationship. International Review of Management and Marketing, 9(6), 76-79. doi: 10.32479/irmm.8839
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Question 
Article Analysis about Performance Appraisal
Performance Appraisal Assignment Instructions:
Analyze the following article:
3 Ways Performance Reviews Are Getting Revamped — For the Better, by Stephanie Taylor Christiansen, September 25, 2015, Forbes Magazine
In-text citation (Christiansen,2015) Reference:
Christiansen, S.T. (2015). 3 Ways Performance Reviews Are Getting Revamped – For
the Better. Retrieved from http://www.forbes.com/sites/learnvest/2015/09/25/3-waysperformance-reviews- are-getting-revamped-for-the-better/#2135d41a69ec
Answer EACH of the six (6) questions separately (include the question with each response). The paper needs in-depth research and analysis to show understanding and knowledge of the points raised by the author/s in relationship to the Performance Appraisal process.
Note: the Christiansen (2015) article, along with two to three outside academic sources, are required as references for the following questions:
1. Why was the performance appraisal first established? What was its purpose?
2. What are the problems with the Annual Review, and how can it be fixed?
3. What type of Performance Review provides the best feedback? (based on academic data)
4. Link the Performance Review to Compensation. What is the connection between Performance Appraisal and Compensation?
5. Find at least three companies from the Christiansen (2015) article and another
source that use Compensation perks that drive performance. More extensive research may be needed. Use your search skills. A minimum of three companies and what compensation perks they provide their employees.
6. After you have finished your research, describe in your own words what you feel is the best Performance Appraisal method and why.
HRM201 – Human Resource Management Performance Appraisal AssignmentNotes:
Additional research is needed. Find an academic article (from the readings and resources or a valid business source such as Forbes, Fortune, Bloomberg News, New York Times, Wall Street Journal, SHRM, Harvard Business Review, etc.).
Microsoft Word Document with APA formatting and 12 pt. fonts double-spaced.
Each question requires a minimum of three paragraphs of information cited per APA format.
APA format requires a cover sheet, introduction, contents, and at the end of the paper a list of the references.
Cite all your sources and incorporate them in your Reference (APA format guidelines
under College Success Resources)
Each question should be answered separately, with a minimum of three paragraphs of sufficient data.
Important: The purpose of this assignment is to measure the student’s understanding of
the lessons learned via class lectures, supporting documentation within the Units and outside research. Cutting and pasting from a resource are not allowed. You need to research a topic for full understanding and then present the information in your own words.
All paraphrased (reworded) information needs to be cited in accordance with APA
guidelines. Safe Assign is used to prevent plagiarism. The APA format gives students the tool to correctly identify sources.