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Performance appraisal for evaluation using the traditional approach serves the following purposes: (Grote, p. 4-5)
?I Promotion, separation and transfer decisions
?I Feedback to employees about their performance
?I Evaluations of relative contributions made by the individuals
?I Criteria for evaluating the effectiveness of selection and placement decisions
?I Reward decisions, including merit increases, promotions and other rewards
?I Determining training and development needs
However, there are a few flaws in the traditional approach to performance appraisal... displayed 300 characters
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Some of these are:
?I It is primarily concerned with past 12 months history rather than looking forward to future goals
?I The appraisal is usually tied to the employees salary review
?I Demands a large amount of time from the supervisor, requiring a lot of time and observations of employees performance
?I Personal values and bias can replace organizational standards... displayed next 300 characters
There are the one-way assessments, which is basically feedback from supervisor to supervisee. The interactive process is when both parties complete the appraisal form and then come together to identify points of agreement and disagreement about the employee’s performance...
Irrespective of department or managerial levels.
? Compliance: All employees should have the opportunity to perform well & low performers should provide opportunity for explanation of causes leading to low performance
? Communication: Managers should explore all avenues to improve performance & productivity
? Commitment: Should not be treated as “just a process” but should be incorporated in essential business conduct
? Creativity: New ways to improvement should be formulated
? Continuous: Not just once a year! Instead should be considered as part of routine & the required feedback should be properly communicated...
Then the action plans and the improvement opportunities of the poor performers are discussed and they are given to improve their performance in a given time period, after which the appropriate HR decisions are taken...
Managers face five challenges in managing performance: rater errors and bias; the influence of liking; organizational politics; whether to focus on the individual or the group; and legal issues (including discrimination and employment at will)...
If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order...
According to theories of motivation and common expectation, people who contribute more should receive more. Relative adjustment in pay based on the person's performance forge a link between pay expenditure and individual productivity...
