Performance Appraisal System

Performance Appraisal System

Introduction

Performance Appraisal system has become most important aspect for Human Resource in each organization. HR activities and business strategies today, focus on performance appraisal system, in order to produce better outcomes than before. The most important factor for any company is to meet customer requirements and, customer requirements are mostly satisfied by the brilliant work of employees in organizations. If there is no performance appraisal system, then employees may not feel satisfaction working in that organization and, result outcomes will not meet expectations of customers.

Discussion

Good Characteristics

Each organization is focusing to implement performance appraisal systems, according to their own systems and formats. Employers and top management seek employees' performances and competences and, distribute rewards according to their performances. It is also incentivizing employees in each organization by giving them extra benefits, other than basic and gross salaries (Ivancevich, J. M. & Konopaske, R., 2013).

Each organization has few best employees who perform well according to the standards and policies of that organization. Organizations do not want to loss such an employee but, if there is no performance appraisal system in that organization, there are chances that, an employee may switch job, and avail another opportunity given by another organization.

According to the definition, performance appraisal system is the process in which, performance of an employee, volunteer and other staff is appraised (Angelo S. DeNisi and Robert D. Pritchard, 2006). Performance appraisal systems should also associated with the goals and objectives of an organization.

Communication goals

Employers tell their employees about organization's goals and objectives with major career growth of an employee. If an employee is associated with a team then, evaluation of performance is also dependent on team performances. Let us take an example, if any team has the target to open 100 new investor accounts on monthly basis, then it is no matter if team fails to achieve the target, top management should consider an employee's own effort by considering time punctuality and attendance.

Communication goals create mutual understanding of objectives and scope of work between employees and managers. They have to work for the same organization and, all the targets and goals of an organization are certainly achieved with the help of mutual understanding between top management and employees.

Accountability

The appraisal system also tells an employee, to become accountable, in order to achieve targets. Manager may break our targets and milestones into smaller targets. For example, an employee tends to sell products worth $250000 in a year but, manager breaks into smaller milestones like $10000 quarterly. This is also a good characteristic of appraisal system as it will help employee to take interest in achieving the target in specific time period.

Training and Developments

In a good appraisal system, managers tell their employees about their strengths and weaknesses because, strengths and weakness are present in each employee, and may be beneficial if employees know about their skills. Managers tell their employees, that their performances are either satisfactory or not satisfactory. An appraisal system may contain training and ...