Performance appraisal
The term performance appraisal refers to the regular review of an employee’s job performance and overall contribution to the company (Adam Hayes, 2020). This will evaluate individual skills, performance, engagement, contribution to work and his or her growth. Also, according to Armstrong, Performance management, if carried out properly, can reward people by recognition through feedback, the provision of opportunities to achieve, the scope to develop skills, and guidance on career paths (Armstrong, (2017) ). Further Armstrong states that, all these are non-financial rewards that can encourage job and organizational engagement and make a longer-lasting and more powerful impact than financial rewards such as performance-related pay(Armstrong, 2017). Employee get more confident and engage towards his/her work and he/her will perform work with passionate through these kinds of evaluations.
In early 2020 there were 10 analytical chemists in ABC Industrial Laboratories Ltd, Sr Lanka and only 04 analysts were really engaged to work their involved in. After many training and development programs, goal settings and performance evaluation senior management decided to establish a performance appraisal system and they were rewarded with additional bonus at the end of the year with a recognition indicating how valuable these employees for the organizational growth. And in the coming year more than 90% of employees were able to perform high scores from their evaluations and financial records proved that the company revenue has increased compared to 2020. Companies use performance appraisal systems to give feed back to employees about their performance and to justify pay increases and annual bonuses. Also, will use these for termination decisions.
Performance management is, of course, also
associated with pay by generating the information required to decide on pay
increases or bonuses related to performance, competency or contribution. In
some organizations this is its main purpose, but performance management is, or
should be, much more about developing people and rewarding them in the broadest
sense ( Armstrong, (2017) . An effective performance appraisal
offers managers the opportunity to gain a deeper understanding of those who
report to them and how they work. So, managers can identify the expertise and capabilities
of their employees. It can also help to motivate and engage employees, improve
their performance in their work role, facilitate their personal development and
enhance their contribution to organizational objectives. For employees, the
performance appraisal should deepen their understanding of their work and what
is expected of them, in relation to individual and organizational goals,
provide recognition of their achievements, identify areas of weakness or poor
performance and give them an opportunity to discuss any problems or development
needs they have. It also encourages employees to take ownership of, and
responsibility for, their performance and personal development.
1.
To provide adequate feedback to each person on
his or her performance
2.
To serve as basis a basis for modifying or
changing behavior toward more effective working habits
3.
To provide data to managers with which they may
judge future job assignments and compensation, the performance management
system is central for effective management system ( Levinson, 1976).
References :
Levinson H,(1976), Appraisal of what performance, Harvard Business Review, ( Harvard business review, https://hbr.org/1976/07/appraisal-of-what-performance, Accessed 1st May 2022.
Comments
Post a Comment