Reference no: EM133157113

HUMAN RESOURCE MANAGEMENT

PERFORMANCE APPRAISAL AND CAREER MANAGEMENT

Question: Many managers describe performance appraisal as the responsibility they like the least. Why is this so? What could be done to improve this perception? 

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ADDITIONAL INFORMATION: Performance Review

An Evaluation of Performance

It is a method of evaluating a worker's overall contribution to the company. An annual review, performance review or evaluation, or employee appraisal evaluates an employee's skills, achievements, and growth.

Performance appraisals give employees feedback on their work, justify pay raises and bonuses, and even terminate. An annual, semi-annual, or quarterly audit can be conducted at any time.

Key Lessons

• Regular evaluation of an employee's job performance and contribution to the company.
• Performance appraisals are used to identify top performers, assess progress, and reward high achievers.
• The most common type of performance review is a top-down review, where a manager evaluates their direct report.
• Employees who believe the evaluation doesn't reflect their company's culture may be dissatisfied.
• Annual reviews, performance reviews, and employee appraisals are all terms for performance reviews.

Performance Evaluations

Human resource departments usually design performance appraisals to help employees advance their careers. They give people feedback on their work performance. It ensures employees manage and meet their goals and guides if they are not.

Because companies only have a limited amount of money to award incentives like raises and bonuses, performance appraisals help allocate funds. They allow employers to identify which employees have contributed the most to its growth and reward them accordingly.

Performance appraisals also help employees and their managers develop plans for further training and responsibilities and ways to improve and advance in their careers.

Managers and employees should communicate about contributions throughout the year, not just at performance reviews. More frequent conversations help keep everyone on track, strengthen employee-manager relationships, and reduce the stress of annual reviews.

Performance Appraisal Types

Most performance reviews are top-down, with no input from the subject. There are others:

• A person rates their job performance and behavior.
• Peer evaluation: coworkers evaluate an individual's performance.
• 360-degree feedback: includes input from self, boss, and peers.
• Negotiated appraisal: A newer trend involving a mediator allows the subject to present first. Before criticizing, consider what the person is doing well. This structure is useful in subordinate-supervisor conflicts.
• Many companies have developed performance appraisal apps to help automate the process.

Appropriateness Criticism

Performance reviews are meant to inspire employees to achieve their goals. But they are heavily criticized.

Individual and organizational performance can be difficult to differentiate in performance appraisals. An evaluation design that doesn't reflect a company's culture can be harmful. Employees are generally unhappy with their performance reviews. Other possible issues are:

• Employees may tailor their input to please their employer if they distrust the appraisal process.
• Performance appraisals can lead to unrealistic goals that demoralize employees or encourage unethical behavior.
• The use of performance appraisals may have reduced the use of merit and performance-based pay.
• Performance appraisals can lead to unfair evaluations that focus on likability rather than accomplishments. Managers may also give positive feedback to underperforming employees to avoid a rift.
• Unreliable raters can introduce biases that skew appraisal results toward preferred characteristics.
• Not all cultures or job functions benefit from performance appraisals.

The Purpose of Performance Appraisal

Performance appraisals are used to evaluate an employee's work performance over time. These reviews help to improve future performance by highlighting strengths and weaknesses.

When Should a Performance Review Happen?

Management of performance is ongoing. Managers are encouraged to meet with employees to set goals, track progress, and provide feedback. Annual or quarterly formal reviews or appraisals are common.