performance-appraisal-system

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Performance
appraisal system

Background

The
thesis is methods and processes of performance appraisal system in companies.
It is imperative here to understand the need of performance appraisal system
first. Performance appraisal system is getting formalized in organization
Boatner (1980). This statement presents ample evidence about the importance of
performance appraisal. Performance appraisal system has objectives of
improvement in performance, and fulfilment of personal and organizational goals
Carter & Rausch (1994). The formal processes of performance appraisal
system also standardize the evaluation of performance Walsh (1995). This helps
to mitigate grievances of employees regarding biased performance appraisal
system. All these statement furnish
sufficient logics in favour of performance appraisal system to be in place in
organization. For the purpose of understanding the impact of performance
appraisal system real examples of Cable and Wireless Company and Rogers Company
are illustrated. The company cabal and wireless company is practicing many
methods of performance appraisals such as MBO, work standard and ranking
method. Rogers Company is using the ranking method.

Aim

The
aim is to understand the various performance appraisal methods employed by
these companies to consider their effectiveness in improving performance of the
organization and reduction in labour turn over. The other factors are satisfaction
and motivation level of employees in general when these methods are applicable.

Draft research question

The
question is whether the ranking method, MBO and work standard methods are
effective in dealing with employees’ productivity, motivation and satisfaction.

For
analysing the impact of these methods it is pertinent to consider the advantages
and disadvantages of each method. Ranking method advantages are that employees
receive ranking according to their performance and it is convenient to assess
the best and worst employees. There are limitations too of this method such as
difficulty in comparing the individuals who have possessed the different skill
sets correctly against each other, the employees is compared against the group performance
and this is a major drawback, ranking of individuals in large organization is
very difficult and the systematic procedure of this method is absent. The work standard approach sets clear and
transparent goals for employees to make them aware about the job expectations
but the limitation is difficulty in comparison of individual rating because the
standards for the work may be dissimilar from one job to another job. The
management by objectives methods lets employees set the goal but the self
direction is missing in this method. The performance appraisal system can be
effective if it used judiciously. In ranking method, focus should be to
maintain constructive feedback, improve performance and provide development
opportunities. It should be based on other methods as well. The MBO must be
used judiciously with other methods to eradicate the loopholes of this method.
Same strategy can be adopted to work standard method.

Draft objective

To measure the effectiveness of performance
appraisal tools to devise an excellent performance system for organization.

Feasibility of the study

The
study reveals the factors responsible for the better performance appraisal system.
The analysis of companies brings facts in light that the performance appraisal
system must be oriented towards the vision and mission of the company. The
performance appraisal system must address the potential for development of
employees and take care of individual and organizational needs. The performance
appraisal should seek to match the person-task and career plans Rao (1985).
Performance appraisal is done to avoid the negative feedback to the employees.
The objectives of performance appraisal are important for company productivity,
talent recognition and retention, and career development of employees Rao
(1985). It offers guidelines to the organization about developing concrete task
description and development of skills of personals Rao (1985). It is a very
effective tool to practice organizational control and to shape desired
behaviour in employees. Performance appraisal system provides a good mechanism
for communication to redressal of employee’s grievances. Employees can avail
the facility of self reflection to improve their performance. The performance
appraisal system sets standards and benchmarks for acceptable behaviour from
employees and that creates a particular goal oriented culture and good norms
and values are fostered. Ultimately the organization receives huge benefits by
devising a superior performance appraisal system.

All
these factors are significant for the survival of business and the feasibility
comes from the advantages of a well defined performance appraisal system.

Resources importance for identifying
the existing gap

Further
the resources used in the report contains valuable insights about the
performance appraisal system approach and the articles and reports considered
bring many facets and role of performance appraisal in organization. The
resources used here are helpful in deduction of knowledge regarding the better
performance appraisal as well as the gaps identification. The gaps identified
in the performance appraisal system are related with unstructured feedback and
less focus towards the personal development of employees. The various reports
offer information to have a mix of performance appraisal methods to address the
shortcomings of performance appraisal methods. The analysis of the companies
reveal that sometimes performance appraisal system lacks the focus towards
personal development and career enhancement and it becomes a tool to harass
some of the employees by the bosses. The guidelines for a better performance appraisal
system can be assimilated with the learning obtained.

Methodology

The epistemological approach in research is
relativist. The aim of research is to find correlation in world by
triangulation and that can be possible with different reports on performance
appraisal system compared with performance appraisal system of real companies
Cable and Wireless and Rogers.

References

Aforo Akua Asantewaa
and Antwi Kodjo Asafo-Adjei,
(2012). Evaluation of the performance
appraisal systems in KNUST and GIMPA librarie
Available from<

.e3journals.org/cms/articles/1345993481_Akua%20and%20Kodjo.pdf”>http://www.e3journals.org/cms/articles/1345993481_Akua%20and%20Kodjo.pdf>
[ 1 April 2015]

Boachie-Mensah Francis O. & Seidu Peter Awini, (2012). Employees’ Perception of Performance
Appraisal System: A Case Study.
Available
from<.ccsenet.org/journal/index.php/ijbm/article/viewFile/12311/9885″>http://www.ccsenet.org/journal/index.php/ijbm/article/viewFile/12311/9885>
[ 1 April 2015]

Boatner.
J.W (1980). The performance appraisal.
Fire chief, 36-39.

Carter,
H.R & Rausch, E. (1989). Management
in the fire service
. Quincy, MA: National Fire Protection Association.

Culbert
Samual A, (2008). Get Rid of the Performance
Review!
It destroys morale, kills teamwork and hurts the bottom line. And that’s
just for starters
.Available from<.wsj.com/articles/SB122426318874844933″>http://www.wsj.com/articles/SB122426318874844933>
[ 1 April 2015]

Einstein,
W. O., & LeMere-Labonte, J. 1989. Performance
appraisal: dilemma or desire
?Sam
Advanced Management Journal,54(2): 26-30.

.emeraldinsight.com/action/doSearch?ContribStored=Cook%2C+J”>Jill
Cook,.emeraldinsight.com/action/doSearch?ContribStored=Crossman%2C+A”>Alf
Crossman, (2004). Satisfaction with performance appraisal systems: A study of role
perceptions
,Journal of Managerial Psychology, Vol. 19 Iss: 5, pp.526
– 541

Jr .sagepub.com/search?author1=Robert+D.+Bretz+Jr.&sortspec=date&submit=Submit”>Robert D. Bretz., Milkovich.sagepub.com/search?author1=George+T.+Milkovich&sortspec=date&submit=Submit”>George T.and.sagepub.com/search?author1=Walter+Read&sortspec=date&submit=Submit”> Read Walter. (1992).The Current State of Performance Appraisal Research
and Practice: Concerns, Directions, and Implications
.
Available from<.sagepub.com/content/18/2/321.abstract”>http://jom.sagepub.com/content/18/2/321.abstract>
[ 1 April 2015]

Monga,
M. L. 1983.Management of
Performance Appraisal.
Bombay:
Himalaya Publishing House.

Rao, T.
V. 1985.Performance Appraisal
Theory and Practice.
New
Delhi: Vikas Publishing House.

Traditional methods of
performance appraisal
(n.d.). Available from<.whatishumanresource.com/traditional-methods-of-performance-appraisal”>http://www.whatishumanresource.com/traditional-methods-of-performance-appraisal>
[ 1 April 2015]

Walsh
M.W. (1995). Effective supervisory
practices
. Wahington D.C. International city/County Management Association.

Literature review for
performance appraisal system

Introduction

As the performance appraisal system of Cable
and Wireless company and Rogers company have suggested to implement the MBO,
work standard, and ranking methods, the report contains the assessment of three
reports to further develop insights about the role and requirement of
performance appraisal system and its relevance for enhancing the productivity
of employees and organization. The report are briefed and synthesized with the
proposal objectives and that is making a better performance appraisal system by
analysing the performance appraisal methods of mentioned companies and other
prevalent performance appraisal methods.

Literature review

According to the
“A composite model for employees’ performance appraisal and improvement” a
innovative method of performance appraisal can be developed for training
program. As the proposal objectives are to devise a better performance
appraisal system, this report can bring in valuable insights to develop
performance appraisal system. The report contains the methodology that has used
the new approaches such as data development analysis and integrated fuzzy
model. The interpretive structural modelling is devised for training program
design. If the objectives of report are taken in to consideration, it is aimed
to evaluate the working efficiency of employees and to rank them, improvement
areas identification of them and their performance appraisal improvement
through the integrated fuzzy model as well as data envelopment analysis. The
report aims to remove many limitations of traditional methods such as biased
feedback, inefficient procedure, non relevance to objectives of organization
etc. As the dissertation objectives is to enhance the better performance
appraisal system by eliminating the barriers for implementation, this report
further creates inroads for knowledge creation to better manage performance
appraisal. The ranking method, MBO and Work standard methods are already
employed but there are certain more methods companies need to have better
performance appraisal system. The report takes care ofdifferent traditional
methods and their inefficiency to meet the goals of employees. There are many authors that have pointed out
the shortcomings of traditional methods Grubb (2007). The training requirements
and knowledge improvement of employees may not be possible with the traditional
methods. The rating is found to be subjective and biased and thus inappropriate
Grubb (2007). So it is essential that in modern era, what kinds of other
methods can be useful for employees. Qualitative and quantitative methods of
performance appraisal are unable due to descriptive nature and individual
ration consideration. The company cable and wireless and Rogers are using the
traditional methods and it will be better to incorporate better tools for
performance appraisal to improve the productivity of employees. As the performance
evaluation cannot be based on qualitative and quantitative methods there should
be methods such as fuzzy logic models, fuzzy analytic hierarchy process, and
other to identify the imprecision involved in replying the answers. The non
verbal gestures are important cues that fuzzy logic model reads to understand
the underlying feeling and motivation of employees to make them job fit. The
composite model and interpretive structural model are also suggested and all
these models if combined can mitigate the errors and limitation of qualitative
and quantitative performance appraisal system. This insight can help to add
these features with traditional methods of companies to make a better
performance appraisal system.

The next report “the
effects of appraisal review content on employees’ reactions and performance”
have focused on the appraisal review roles to change the subsequent performance
of employees. The study reveals that the three measures of appraisal review
content such a participation in employees in discussion during the appraisal
review, clear goals, and career issues cannot raise the performance standards.
The matters presented in this report assume that the performance appraisal
system is necessary for enhancement of productivity. The employees are
motivated to obtain much information about their job performance to regulate
their behaviour Carroll and Schneier (1982). The past studies reveal the same
facts that are submitted. As previously found that goal setting and career
discussion through the ranking methods, MBO and work standard methods and other
methods can raise the productivity, similarly the report finds out that these
two variables are positively related to employees’ satisfaction and it is a
prerequisite to enhance productivity. This proves that performance appraisal
system can enhance the morale and motivation with job satisfaction of
employees. The MBO method that allows the employees for goals setting is very
important as the study recommends that supervisors must allow employees in goal
setting. The career development as suggested in previous report submitted is
also positively linked with satisfaction enhancement as this report contains.
The report also mentions specifically that the subsequent performance of
employees after performance review can be less if the performance appraisal
system lacks stability. The stability can come with precision and right tools
selection for performance appraisal system. As the MBO, and other methods have
proven their competency in increasing the morale and motivation along with
productivity of employees so the chosen tools of companies are rationally
grounded but there are more tools that companies can incorporate. The
constructive feedback is important and the informal feedback also plays a crucial
role in performance appraisal system. So it should be ensured that informal
feedback should provide constructive feedback apart from utilising the
performance appraisal techniques. Though the report mentions that the variables
such as clear goal setting, career discussion and participation may not raise
the productivity but certainly the satisfaction can be derived and performance
appraisal system goal is to obtain satisfaction of employees to make further
progress towards enhancing productivity.

The report “aqualitative
approach to upward evaluation of leadership performance: pros and cons” focuses
upon upward performance appraisal system such as 360 degree appraisal for managers.
The results obtained are concerned with qualitative methods of performance
appraisal such as 360 degree appraisal or MBO or ranking method etc. It is
revealed that qualitative approach can beused in certain favourableconditions
such as the climate of safety from appraiser and subordinates, open process but
with closed results, relationship between mange and subordinates must be
healthy and clear understanding regarding the qualitative data. These
prerequisites for making a qualitative method successful serve the topic chosen
for dissertation and the report recommendation enhances the knowledge to
implement a performance appraisal system properly.

Conclusion

All the reports
assessed have contributed well for the development of a better performance
appraisal system that has to be recommended to HR people. The knowledge gained
are synthesized well with the topic chosen and matters support all the
established facts analysed before but with some new information that can be
further added to enhance the effectiveness of performance appraisal system.

References

Carroll .S.J.
& Schneier. C.E., (1982). Performance
appraisal and review system: the identification, measurement, and development
of performance in organizations
, Glenview, III. Scott, Foresman.

Grubb, T.
(2007), “Performance appraisal
reappraised: it’s not all positive
”, Journal of HumanResources Education,
Vol. 1 No. 1, pp. 1-22.

Lee Mushin & Son Byoungho(1998).The effects of appraisal review content on
employees’ reactions and performance
.The International Journal of Human Resource
Management 9:1.Available from<www.researchgate.net/…/232942581_The_effects_of_appraisal_review_content_on_employees_reactions_and_performance>
[5 April 2015].

Turrentine
Cathryn G., Lener Edward F.,Young Michelle L., & Kok Victoria T. (2004). “A Qualitative Approach to Upward Evaluation
of Leadership Performance: Pros and Cons”
.Availablefrom<.researchgate.net/…/248498844_A_Qualitative_Approach_to_Upward_Evaluation_of_Leadership_Performance_Pros_and_Cons”>www.researchgate.net/…/248498844_A_Qualitative_Approach_to_Upward_Evaluation_of_Leadership_Performance_Pros_and_Cons> [5 April 2015]

T.R. Manoharan
C. Muralidharan S.G. Deshmukh, (2012),”A
composite model for employees’ performanceappraisal and improvement
“,
European Journal of Training and Development, Vol. 36 Iss 4 pp. 448 – 480

1. Research
Aim and Objectives:

The aim of the research is to identify how the Cable
and Wireless Company and the Rogers Company have implemented the performance
appraisal systems to develop the skills of the employees within the company.
Almost all companies invest in performance appraisal systems or performance
management techniques in order to better understand the abilities of their
employees and to enhance further growth.
The thesis is methods and processes of performance appraisals system in
Cable and Wireless Company and the Rogers Company. The following objectives
will be considered:

v To
present a theoretical framework of performance management techniques and
performance appraisal within the
organizations listed above

v To
identify the relationship between the performance appraisal system used by
Cable and Wireless and Rogers in relation to employees skills.

v To
present a comparative study between Cable and Wireless and Rogers performance appraisal system

This research topic is valuable for the readers as
well as the employees to comprehend the advantages and benefits of performance
management techniques for the organizations.
It is the strategy of the firm to influence and motivate the employees,
so that they will work and accomplish their goals over their personal
development (Busi and Bititci, 2006).
With the assistance of this research topic, the researcher will cover
how performance management helps in motivating employees and provides them with
the advantages. This study will have a
significant contribution in the extensive range of available literature
articles. The use of real life examples
and comparison of performance appraisal systems of Cable and Wireless and
Rogers will enhance the credibility and provide a comprehensive view to the
readers about the impact of performance management techniques for employees.

Justification
with Epistemological perspective

The epistemological perspective refers to researcher
relation with reality. The topic
selected for the research has position of interpretivism. The relation of researcher with reality is
that reality is relative as well as multiple (Hudsen and Ozanne, 1988). The fixed realities are hard to achieve (Neuman,
2000) so the information contained here for the topic is constructed on social
ground (Carson et. al., 2001). The topic
has been understood by the perceived knowledge and it is trying to understand
the specific contexts. On the basis of
this perspective it can be assumed that the research topic is non-quantitative
and based on perceived knowledge as well as factual points. Though it has the interpretivist approach, it
certainly can develop insights about the practices of performance appraisals of
top companies to set them as benchmark to improve the skill sets of employees.

Feasibility:

There are lots of data available on the performance
appraisal methods and processes along with information that can be retrieved
from these two companies. Consent will be obtained from the organizations to
obtain the relevant information from internal sources. In order, to conduct real company data,
primary data collection methodologies will be organized and interviews along
with surveys will be completed with the consent of the participants.

The analysis reveals that various tools have been
employed to measure the performance of employees and in that, work standard
approach and Management by Objectives are some methods which has been
practiced. For improving the skills of
the employees in Cable and Wireless Company, management by objectives method,
work standard approach and ranking methods have been used. In Rogers Company, ranking methods have been
used mainly along with graphic rating skills.

.

2. Literature
review

According to Kandula (2006) with increasing
competition all through the different industries, the companies’ management has
started focusing on changing the role of performance management
techniques. Thorpe and Beasley (2004)
asserted that performance management is an actually a broader and a complex
function of Human Resource (HR), which is changing with the present global
context.

3. Research
Methodology

This study will be of a descriptive form, which will
adopt a random sampling strategy for collecting primary data.

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