Performance appraisal refers to a process where an employer or rater may get involved in the evaluation of workers or personnel within the organization. Even though an employee may have their own goals, they tend to be more motivated when they get feedback with regards to their progress in the workplace. In this regard, the paper aims at addressing ways in which an appropriate performance appraisal is likely to enhance or improve the performance of personnel. To effectively achieve this aim, the essay will include potential bias, strategic advantages, and the attainment of strategic objectives where performance appraisal is concerned.
Certain aspects such as fair hearing, adequate notice, and judgment that rely on evidence often characterize effective performance appraisals. Fair hearing refers to a situation where there exists communication between both the employer and employee during evaluation this affords a worker opportunity to explain his side of the story. Adequate notice ensures that employees are fully aware of the kind of criteria that will be used in the appraisal process. Finally, basing judgment on evidence will mean that facts will be used to rate workers’ performance and not personal opinions. As such, an effective performance appraisal increases the performance of personnel because they will be in a position to review their previous performance after which they will communicate their expectations and even come up with plans for their future development (Sims, 2002). This is especially so because when employees have a clear knowledge of their performance then they will be motivated to improve.
According to Sims (2002), research shows that recognition of employees’ efforts through performance appraisal satisfies a greater psychological need thus performance appraisals provoke workers to do better. Additionally, performance reviews empowers employees to communicate their strategic vision, which is, in fact, an advantage to the company. Through this system, the goals of an employee can be established especially because they are expected to be in line with that of the organization. Performance appraisal gives room for consistency that is a strategic advantage because the same criteria will be used to evaluate employees so as to promote growth.
Unfortunately, there are certain biases in performance appraisal that should be avoided if employees are to record some positive progress in their work. Firstly, is the contrast where a rater or manager is likely to compare the performance of one employee against the other instead of making use of the company’s standard. Secondly, is that of the halo effect where an employee gets a high rating in all areas of an organization simply because he or she shines in a particular field or department. Thirdly, is the horn in which case a worker is poorly rated yet they are only weak in one area. Fourthly, is leniency, which leads managers to provide satisfactory ratings for all the employees probably because they have a broader span of control. Finally, is the problem of recency where an employee can consistently be ranked at the top because of their previous good performance and ranking another individual poorly because of past performance yet this is not the same (Sims, 2002). The performance of employees may have changed to the extent that the one ranked poorly may have actually done well. Eliminating bias in performance appraisals can increase the performance of employees because they will have confidence in the system thereby appreciating it. As such, employees will be able to take the outcome of the appraisal seriously and work towards improving their performance.
Performance appraisal can enable managers realize their strategic goals in various ways. Performance appraisal enables raters to regularly track a company’s goals thereby making it easier to make relevant adjustments to available performance plans and deal with existing obstacles. In this way, organizations will be in a position to achieve its strategic goals because of its ability to continually assess its progress. Secondly, an appraisal system allows the management to prepare and train employees adequately. This move is instrumental in shaping workers for future challenges and to take up more challenging roles that will see a firm achieve its strategic objectives.
Thirdly, organizations that conduct regular performance reviews influence employees’ attitude through their feedback. Through the recognition and support derived from performance, appraisal employees will be encouraged to full participate in the organization’s activities to ensure its future success thus a realization of strategic goals (Sims, 2002). Finally, performance reviews tend to encourage best practices like the use of technology because employees’ competencies are enhanced and they become open to undertake challenging tasks. Moreover, firms tend to adopt an automated system to promote best practices that are consistent, efficient, and easy to complete. Technological equipment will promote consistent standards and accountability and in the long run a firm’s strategic goals will be realized.
An effective performance appraisal is one that is characterized by fair hearing, adequate notice and evidential judgment. Moreover, such a system should not be marred with any kind of bias if it is to promote positive behavior and improved performance in an organization. Therefore, performance review improves employee performance by enhancing consistency, optimal performance and communicating valuable feedback.
Sims, R. R. (2002). Managing organizational behavior. Westport CT: Greenwood Press.