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Literature review on performance appraisal of employees

Sa Daf Chapter 2: The following section will show how appraisal, although only one part of the wider system described above, is central to the effectiveness of Performance Management Piggot-Irvine A workshop facilitated by the author prior to the commencement of this research, defined performance appraisal as measurement of what we do and how. Previous research by the author into the effectiveness of performance management within the predecessor to Passenger Focus Rail Passengers Council revealed that a reasonable system was in place but did not appear to be delivering.

  • Performance Appraisal still plays a huge part in organizations today;
  • A literature review is the effective evaluation of selected documents on a research topic;
  • Instead of eliminating Performance Appraisal, organisations need to work on improving their system and make sure that it is effective.

This adds weight to the view of Brumbach who suggests that the appraisal system can be seen as a dishonest annual ritual. There is much research which suggests that appraisal is not practiced well, or welcomed in some cases. Roberts and Pregitzer suggest that performance appraisal is a yearly right of passage that triggers dread and apprehension in the most experienced, battle hardened managers.

More in depth research by DeNisi suggests that due to the subjective nature of appraisas, it is not surprising there has been much written on 22 bias, inaccuracy and inherent unfairness of most systems. Brown cites major problems in Towers Perrin Performance Appraisal practices. He cites lack of training for managers particularly important. Hartle cites study by the Local Government Management Board inconcerning appraisal. Key findings were; Managers do not take the process seriously, inadequate effort from all involved, bad communications and training hinder effectiveness, the systems are too individualistic, remote and divisive, and ratings can be inconsistent and unfair.

Linking this to performance, Bird suggest performance appraisal is the assessment of what we produce and how.

Armstrong defined Performance Appraisal as the formal assessment and rating of individuals by their managers at, usually, an annual review meeting. Performance appraisal is not just about rating employees, Meenakshi identified that organizations carry out Performance Appraisal as a basis for administrative decisions such as promotion, allocation of financial rewards, employee development and identification of training needs. Fletcher believes that the general aims of Performance Appraisal also include motivating staff, Succession planning and identifying potential, promoting manager subordinate dialogue and formal assessment of unsatisfactory performance.

However, Khan states that the fundamental objective of performance appraisal is to facilitate management in carrying out administrative decisions relating to promotions, firings, layoffs and pay increases.

From carrying out the performance appraisal, management then has to make choices in relation to retention, future assignments and training and developmental needs Hillman et al, Performance appraisal also known as performance review, formally documents the achievements of an individual with regards to set targets.

It is a component of PMS. The system has become an essential management tool in today's organizations. Managing employees' performance can be said to be as important as any other work that all managers execute during the year.

Grote describes performance appraisal as a formal management tool that helps evaluate the performance quality of an employee. Schneier and Beatty as cited in Patterson define it as a process which apart literature review on performance appraisal of employees evaluating also identifies and develops human performance.

A literature review on motivation

According to Karol performance appraisal includes a communication event planned between a manager and an employee specifically for the purpose of assessing that employee's past job performance and discussing areas for future improvement.

According to Obisip. There is evidence of early appearances of performance appraisals process in both USA and UK in the 18th and 19th centuries. Around s in the USA and the s in Europe, about a half to two-thirds of large organizations used some PA procedures.

In the s in the USA and around s in the UK, government legislations regarding to employee rights introduced, which forced companies to implement some sort of PA Furnham,p.

From s, the psychological tradition started to develop by employing methods that identified personality and performance used feedback from graphic rating scales, a mixed standard of performance scales noting behaviour in Likert-scale ratings, providing evidence to recruit and identify management potential in the field of selection Prowse and Prowse,p. However appraisal has been present throughout history and has advanced significantly over time. Some of the earliest evidence of Performance Appraisal was seen in the 3rd century when a Chinese philosopher Sin Yu criticized a biased rater of the Wei Dynasty on the grounds that the Imperial Rater of Nine Grades rarely rates men by their literature review on performance appraisal of employees but always rates them according to his likes and dislikes Patten, Appraisal was seen further on, in when it was stated that the Dublin Evening Post evaluated legislators using a rating scale based on personal qualities Hackett, cited in Wiese and Buckley, He used character books and blocks to rate staff.

The blocks were colored differently on every side to represent an assessment of the worker rating them from strong to weak. Following the success of the appraisal system used in the Armed Forces, senior management of large US corporations wanted to test this technique within their organizations and so hired many of these people who were associated with the practice used in the Army.

These appraisal tools tended to exclude top management and also used the same forms for all workers regardless of skills and duties. Because of this a change was brought about in the tools used and consequently the critical incident and forced choice methods were introduced. This replaced numerical or adjective ratings used in the graphic or trait rating scales, with behavioral examples of actual work behaviors.

BARS meant supervisors could rate employees on observable behavioral elements, rather than on a scale. The major advantage of such measures is that the evaluator has to make fewer inferences about the employee.

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One of the most influential events in the evolution of performance appraisal was the legal requirements that changed how appraisals could be carried out. The enactment of the Civil Rights Act in the United States, which prohibited administrative action on the basis of color, religious beliefs, sex, etc. This meant that the use of personality traits in Performance Appraisal and the links between appraisal and human resource consequences had become strictly regulated.

This change has played an enormous part in the shift towards Performance Appraisals as they are now, where there are numerous ethical concerns to take into consideration.

Literature review on employee job performance

Performance Appraisal still plays a huge part in organizations today. A report carried out by the CIPD in found that In recent years, performance appraisals have been used in organizations for numerous reasons, as opposed to the historical method it was used for, literature review on performance appraisal of employees administrative decisions. Between individuals relates to comparison of individuals in terms of performance, Within Individuals concentrates on identifying and developing individuals strengths and weaknesses.

Systems Maintenance can mean using Performance Appraisal as a source to link company procedures and strategy with the performance of employeesand the goals that they have achieved and are working toward. Throughout the vast amount of journal articles and research on performance appraisal, there is a substantial view that while performance appraisal seems like a great tool and should be of huge benefit to every organization, they can be moderately ineffective and so have taken a lot of criticism.

Lawler discusses how a lot of literature poses the idea of dismissing performance appraisal completely, but he believes that Performance Appraisal is a vital procedure for effective talent management. He recommends that the way forward for Performance Appraisal is not to eliminate it but to work on making it an effective tool.

The most known purpose of performance appraisal is to improve performance of individuals. Cummings and Schwab held that performance appraisal has basically two important purposes, from an organizational point of view and these are: The maintenance of organizational control, the measurement of the efficiency with which the organizations human resources are being utilized. Still, there are also a variety of other declared purposes for appraisal as per Bratton and Gold and Bowles and Coates and some are; improving motivation and morale of the employees, clarifying the expectations and reducing the uncertainty about performance, determining rewards, identifying training and development needs, improving communication, selecting people for promotion, discipline, planning corrective actions and setting targets.

Furthermore, Bowles and Coates conducted a postal survey of West Midland companies in Junewhere organizations were asked questions pertaining to the use of Performance management in the organization.

These questions included the apparent purpose of PA in the management of literature review on performance appraisal of employees, its strengths and weaknesses. Through their survey they found out that PA was beneficial in the following ways; PA was favorable in developing the communication between employer and employee, it was useful in defining performance expectations, it helped identified training needs.

Performance appraisal can thus be used as an effective tool to improve employees' job performance by identifying strengths and weaknesses, meeting of targeted goals and providing training if needed. Ward defined degree feedback as: Whereas the feedback is gained by the degree review can be very valuable, the process of collecting it can be too complex. Collected feedback needs to be evaluated and the appraise should be given the chance to comment on the feedback Rees and Porter, Hunt suggested that multi-source review should not be utilized as the only form of appraisal.

Even though it has a multiple advantages, there are a various limitations. It is not suitable to exploit it for performance appraisal which is linked to pay and promotion, but can be used as a developmental tool. Prowse and Prowse argued that the validity of upward appraisal means the removal of subjective appraisal ratings and Fletcher also noted that gender bias against women in evaluation process is solved by this form of appraisal.

Although negative feedbacks collected from full circle appraisal de-motivates appraises too at some extent, it still requires specific competencies from managers to handle 29 detailed feedback and to have discussions with the employees. Walker and Smither carried out a research among managers during five year period and the result revealed some subjectivity issues with multi source ratings, but it increased accountability of appraisers and individual performance dramatically if used appropriately.

Lepsinger and Lucia suggested that introducing multisource feedback system cannot simply repair an appraisal system that is not working due to structural or administrative failures with evaluation system or underlying problems with organizational culture.

  1. Lawler discusses how a lot of literature poses the idea of dismissing performance appraisal completely, but he believes that Performance Appraisal is a vital procedure for effective talent management. HRM performances and the within-firm gender wage gap.
  2. Where the consequence of a low evaluation is termination, no pay increase, an unpleasant work assignment, or no promotion, managers are reluctant to be precise Kearney, Picture essay writing journal of review resource management, 9 1— The influence of age on the job of self-rated performance, burnout and their associations with psychosocial work conditions.
  3. Key findings were; Managers do not take the process seriously, inadequate effort from all involved, bad communications and training hinder effectiveness, the systems are too individualistic, remote and divisive, and ratings can be inconsistent and unfair. Based on age, race, religion, gender, or national origin must be a valid system an accurate measure of performance associated with job requirements.

They believe certain conditions required to exist if the system is to be employed accurately in the evaluation process; the organization needs to have a culture that supports open and honest feedback. Multisource feedback system works successfully where the participatory environment exists rather than authoritarian and everyone acknowledge the value of information obtained by feedback and perceive giving and receiving feedback as a norm, it is essential to have clear, simple, specific, observable and agreed performance measures and behaviors, effective system should diminish irrational responses and be able to identify biased ratings.

  1. According to Obisi , p.
  2. An integrative literature review.
  3. Research paper on santa claus Exploring the relative and combined influence of mastery-approach goals and work intrinsic motivation on employee turnover intention.
  4. Lepsinger and Lucia suggested that introducing multisource feedback system cannot simply repair an appraisal system that is not working due to structural or administrative failures with evaluation system or underlying problems with organizational culture.
  5. One of the most influential events in the evolution of performance appraisal was the legal requirements that changed how appraisals could be carried out.

Self-assessments, self-ratings, self-appraisals, or self-reports are the most widely used method for rating and understanding individual differences Yammering and Atwater, Self rating is a process in which individuals review their own performance, using a structured approach, as the basis for discussions with their supervisors in review meetings Armstrong,p. Literature review on performance appraisal of employees and Lee literature review on performance appraisal of employees that traditional self-appraisals cannot be used as an evaluative tool solely, and its usefulness is very limited especially for evaluative purposes.

Nevertheless, for developmental purposes, self appraisals contain potential for enhancing an employee's job performance. Jiing-Lih, et al noted some benefits that may result from integrating self- rating into traditional performance evaluation systems; it may improve two-way communication between appraisers and appraise, Appraises sense more control over performance evaluation, due to increased participation of the appraise in the system, self-evaluations are generally less affected by halo errors than managerial evaluations, and it is especially useful for evaluating isolated workers and individuals with rare skills as they know much about the work than anyone else, manifold perspectives make it easy to discover overly biased evaluations.

This situation allows creating a less negative and more productive conversation during the review meeting and encourages employees to consider their own training needs. Surprisingly, majority of people appraise themselves realistically, but some people tend to inflate their ratings and it requires significant skills from raters to handle it effectively.

Self-appraisal can only work successfully if employees have clear targets and standards against which to measure them. It can also only be effective in a climate of trust where individuals believe their raters will not take advantage of an open self- appraisal CIPD, From reviewing the literature, there appears to be no one single best method of Performance Appraisal, although there are certain common elements throughout all effective methods.

For performance appraisal to be effective and useful, it is vital that those taking part, the appraiser and the appraisee, are both benefiting from it and find the procedure a productive tool, as without this, it would be impossible for the system to work.

Employees' thoughts of performance appraisal systems could be as important to the continuing success of the system as reliability and validity Dipboye and Pontbriand, An organisation might develop the most precise and sophisticated appraisal system, but if the system is not recognized by the staff, its effectiveness will be limited.

Fletcher listed the three things that employees being appraised looked for in a performance appraisal, these are: According to Cawley et al subordinates reactions to Performance appraisal can be a way of measuring their outlook towards the system. The main reactions that can be assessed are their satisfaction from the appraisal, the utility, whether they feltthey were fairly appraised, how motivated they were from the appraisal and the accuracy of the system.

The ultimate purpose of performance appraisal is to allow employees and managers to improve continuously and to remove barriers to job success, in other words, to make everyone better. Forms don't make people better, and are simply a way of recording basic information for later reference.

These six factors are: Ensuring that the performance appraisal ties in with organizational goals is pivotal to the effectiveness of the appraisal. If the goals of the performance appraisal process are in contrast with the organizational goals, the resulting performance appraisal system could, in fact, be of harm to effective organizational functioning Barrett, Having both the manager carrying out the appraisal and the employee setting goals mutually is crucial for the effectiveness of the performance appraisal.

This can ensure that the employee will work harder to reach these goals as they participated in setting them initially. The degree of involvement of subordinates in the appraisal has been seen to be of benefit to the success of the system. Cawley et al proved that subordinate participation in the appraisal procedure is related to employee satisfaction and their acceptance of the performance appraisal system.

Employee Participation is a key element of intrinsic motivational strategies that facilitate worker growth and development Roberts,