Discussion – Performance Appraisal
In business, environmental corporations endeavor to maximize output and profitability while minimizing cost. Employees are the main workforce in an organization thriving to attain the outlined objectives. It is necessary for the top management to regularly conduct performance measurements to evaluate the productivity of the labor force. Human resource management needs to be innovative in conducting employee appraisals as the business structure is rapidly changing.
Hiring competent employees is the desire of every organization. An organization’s success is highly dependent on the employees’ ability to adhere to the rules and regulations required for the attainment of business goals (Bernardin & Wiatrowski, 2013). Therefore, the top management is mandated with the task of developing a performance appraisal program pertinent according to the job responsibility of each employee. It may be difficult or daunting to determine which areas are contributing to the success or failure of a specific department that directly impacts the value of sales. However, the human resource manager can develop criteria for reviewing specific strengths and weaknesses in employees that directly or indirectly contribute to the realization of set objectives.
An employee can acquire a job role for which they did not qualify. Someone may uphold a façade on the day of recruitment to obtain a position. Performance appraisal ensures that the top management hires the best candidate for the job and shuffles departments as required, considering the employees’ strengths and shortcomings (Daoanis, 2012). Organizing team-building activities can serve as a good avenue for the management to gauge the integration and coordination of employees in a neutral environment.
Coordinating all functions of a business to work towards profit maximization is the management’s responsibility. Investors are important stakeholders that require a positive report on business performance over specific trading periods. Therefore, the management should ensure the employees are reporting to their respective job functions and timely reports to the seniors. A good business culture that provides a harmonious coexistence of the management and employees that is not regarded as obligatory but virtuous establishes the right attitude in an organization and increases its ability to attract more customers.
Most organizations conduct performance appraisals on a yearly basis. This period is considered too long to capture any useful data applicable to improving performance. Hence, continuous performance measurement is a correct method of determining the output of members of staff. If possible, the management should perform an appraisal when the employees are unaware (Sudin, 2011). This is crucial in removing any form of biasness in the evaluation process as most of the employees will be in their natural character and behavior.
Industries in every business environment face some kind of competition unless they operate as a monopoly. Competition is healthy in ensuring that corporations attempt to produce the best quality of products or services for the market. Performing a performance appraisal helps a company identify the sectors that are underperforming and require improvement (Kondrasuk, 2012). The management may be required to redefine the way it captures value in the market. This may include changing employees’ interaction with consumers or an overhaul of business operations methodology. Consequently, the employees will be required to be trained on the most effective and efficient business practices.
Everyone desires to be appreciated in whatever contribution they make towards an achievement. Most corporations hold meetings where the employees with the highest success rate are rewarded with cash bonuses on their income, a trophy, or public accolades. A rewarding employee is a motivating factor that increases productivity and overall satisfaction on the job. Also, other employees are encouraged to work harder to increase their chances of gaining the rewards promised by the management.
A new mechanism of business operations is continuously gaining ground that integrates employees and management in a working environment. This business structure makes it difficult for the management to conduct a performance appraisal as they are part of the workforce. Then the most appropriate method of evaluating the performance is through team members evaluating each other. The mechanism of assessing performance may be subject to discrimination on familiarity or friction between team members (Culberton, Henning, & Payne, 2013). Especially, the younger generation may not coexist amicably with the older or experienced generation in the organization due to differences in personal values.
The government requires that every corporation reserve up to a third of vacancies for the disabled in the community. This is an initiative to integrate the less fortunate into the community and give them a sense of belonging and purpose. Evaluation of the disabled community may not be effectively conducted as there may not be uniform criteria for performance appraisal, considering there are many forms of varied disabilities (Denisi & Murphy, 2017). Similarly, remuneration given to the disabled community may not correspond to their input in a corporation. It is, therefore, a sense of collective social responsibility of corporations to integrate all members of the community irrespective of their differences.
The importance of a performance cannot be overlooked even though it is tedious and may not reflect on the actual business performance since it is usually conducted yearly. Every corporation requires data to be regularly presented to the stakeholders during performance evaluations. An appraisal can increase staff morale considering the use of the data and measures taken to improve the overall staff productivity. However, the profitability of a company may not be solely influenced by the efforts of the employees. Some unforeseen external factors can influence the sales and profits obtained by a corporation.
References
Bernardin, H. J., & Wiatrowski, M. (2013). Performance appraisal. Psychology and Policing.
Culberton, S. S., Henning, J. B., & Payne, S. C. (2013). Performance appraisal satisfaction. Journal of Personnel Psychology.
Daoanis, L. E. (2012). Performance Appraisal System: It’s Implication to Employee Performance. International Journal of Economics and Management Sciences, 55-62.
Denisi, A. S., & Murphy, K. R. (2017). Performance appraisal and performance management: 100 years of progress? Journal of Applied Psychology, 421.
Kondrasuk, J. N. (2012). The ideal performance appraisal is a format, not a form. Academy of Strategic Management Journal, 115.
Sudin, S. (2011). Fairness of and satisfaction with the performance appraisal process. Journal of Global Management, 66-83.
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Question
A performance appraisal is a regular review of employee job performance and contribution to organizational objectives. In many cases, performance appraisals are conducted at the end of the year to evaluate employee performance, as well as set performance for the next year. For this assignment, you will evaluate another function of HR and management and its contribution to effective performance management. Prior to beginning work on this assignment, read the article Adapting the Performance Appraisal Process to Meet the Needs of the Modern Workplace (Links to an external site.).
In your paper,
Discuss how performance appraisals are a function of HR and management.
Analyze the basic components of an effective performance appraisal.
Explain how performance appraisals can contribute to organizational goals and objectives.
Explain the advantages of performance appraisals and how they contribute to effective training and development.
Explain potential forms of discrimination based on labor laws and regulations when conducting a performance appraisal.