Performance Appraisal

Performance Appraisal

Performance Appraisal

1. Recommendations for the Company's Senior Management Team

This contemporary world where every organisation is trying to maximise its production and operational wealth so in this crucial situation the performance management is become very important factor.

Information about organizational performance, competitors, and other business environment factors is essential for organizational competitiveness. However, gathering and reporting relevant information in an accurate, complete, and timely manner is often a sizeable challenge.

Additional challenges are brought about in complex contemporary management environments that include: increased internal organizational business diversity, geographic dispersion of business units, more and increasingly complex federal, state and local reporting requirements, as well as rapidly changing business and accounting reporting standards.

Most organizational performance measurement and improvement approaches provide primarily high level, qualitative guidance to help organizations identify their performance measures. Issues concerning the many tradeoffs, which must be considered before a final set of measures is selected, are rarely mentioned.

The logistical requirements associated with the collection, processing, transmission, security, and reporting of the data required for each measure are also rarely discussed.

In considering the value that could potentially be added by Performance Management, it is important to bear in mind that Performance Management as a process was developed because of the failure of performance appraisals.

In essence, Performance Management represents a move from an isolated, mechanistic, HR-driven approach to performance appraisal towards a comprehensive, integrated business-driven system aiming at organisational and people development.

It was believed that by participative setting goals that are aligned with higher organisational goals, conducting performance reviews and coaching on an ongoing basis, and rewarding an individual's performance based on the outputs of the Performance Management system, desirable outcomes would follow (Spreitzer, et al. 2004, P: 679-704).

Performance management at organisational levelPerformance Management is elevated to a more strategic role, particularly with regard to implementation of strategy and cultural change, and importantly, the involvement of top management with implementation of the system.

The hands-on role senior executives of a large utility company in the UK played in identifying and implementing people-related competencies is most encouraging.

The improvements to the Systems Model suggested by the literature indicate the way forward for Performance Management, developing a sense of mission which entails organisation-focused purposes for Performance Management, combined with transforming the system to a participative, open and just system pose very difficult challenges to senior line management and HR specialists alike.

While organisation-focused purposes and strategies are imperative to ensure the system's relevance, a values-driven Performance Management system, particularly relating to the appraisal-review-decision facet, is essential for enlisting people commitment.

A better understanding of the various justice processes, particularly full understanding of due-process appraisal, is crucial for delivering just and fair appraisal outcomes.

Over and above legal implications, ethical and business prerogatives demand positive appraisal outcomes. It is reasonable to argue that acceptable appraisal outcomes may create a positive climate for acceptance of the entire Performance Management system (Stanne, et al. 2002, P: 133-154).

Performance management is owned by the entire organisation, not just the finance ...