Introduction. The Goals Of The Organization Cannot Be Fulfilled

Performance appraisal is an important issue in human resource management and has a significant effect in the performance of an organisation. It is the system of evaluating the performance of employees regarding the accomplishment of their responsibilities and determining their potential to grow and develop. Bias in the evaluation process can affect the accuracy and appropriateness of the performance appraisal. Bias is a serious issue because it affects the ability to make appropriate decisions about the promotion of employees. A performance appraisal system that works to the disadvantage of members of a group can also pose legal issues.

An appraisal is one of the most commonly used methods of formal assessment and is used to evaluate and assess the performance of an employee against agreed targets and objectives, with the aim of improving employee performance. Where an employee has been able to achieve their targets, the appraisal can be used to recognise successes. This often helps to increase an employee’s confidence and motivation and can lead to better organisational performance. Many organisations will use the outcomes of an appraisal to identify potential candidates for promotions or even an increase in pay. At the same time, an appraisal meeting may include discussions on underperformance, identifying why this has occurred and how this can be avoided in the future.

Performance appraisal is a method which is increasingly used to evaluate employees to determine the degree to which they are performing effectively and encourage them to direct their energies towards organizational performance. Although the appraisal is being practiced, there are criticisms made against the system which generally arise from within the Orthodox and radical management frame work.

The processes demonstrates a commitment to people within the business by showing them that they are valued members of the company and their success is important to the entire organization.

A performance appraisal is one of the most important factors in any organization and can be one of the greatest tools used to record employee production. Every organization has to have goals and objectives established and the employee has to be involved in this process. By conducting performance appraisal will improve productivity and also the morale of the employees.

Performance Appraisals will help to monitor standards, objectives, expectations, responsibilities, tasks, training needs and career succession planning. Also the employee appraisals are used for the evaluation of annual pay and grading reviews, which also coincides with the next year business planning.

Development of a performance appraisal system that is effective in a human service organization is of benefit for the organization and the employees. For a performance appraisal system to be effective, the system has to be strategic, designed to fit the specific needs of the organization, non-discriminatory, non-bias, with correct implementation and administration. Many different components, must to be incorporated to make this type of system beneficial for all who use it, and all who are evaluated by the system.

The purpose of a performance appraisal is to be used to improve employee performance. It should be used as a guide for recognizing outstanding behavior that is in line with departmental policies and work objectives, but should also be used as a tool for feedback to improve observed employee deficiencies. Performance appraisals should never be a surprise when it is presented to the employee. It is important for subordinates to understand what they are being evaluated on and what it takes to be successful.

Performance evaluations are a very important part of a business organization and places promotion and retain ability in the hands of the worker. According to Robbins and Judge,” Evaluations provide input into important decisions such as promotions, transfers, and terminations. Evaluations also identify training and development issues.”(pg.595 2009). There are several different theories and ways to conduct performance evaluations such as behaviorally anchored rating scales (BARS), critical incidents, graphic rating scales, Forced comparison, group order rankings and individual ranking. Each of these systems can be used on their own for ranking employee performance but some organizations use a combination of systems.

Performance appraisal is an evaluation and grading exercise undertaken in organizations to achieve several objectives such as employee motivation, identification of training needs, rewards and remuneration, employee development through feedback etc. [Fig. 1]. All methods for performance appraisal have several advantages and disadvantages based on location of the firm, socio-economic environment, vision and mission of the firm, organizational structure and other factors. Organizations in different industrial sectors may have different focus areas of work and different values and thus, expectations from employees vary across sectors.

Performance appraisals are a tool that most companies use when assessing their employees. A well prepared and well delivered performance appraisal can be beneficial to both the employee and the company. The company benefits in many different ways when they deliver this type of performance appraisal. The performance appraisal process

“Performance appraisals can enhance employee performance as well as advance the mission and goals of an organization. There are many advantages of performance appraisals if they are applied fairly, consistently and objectively. Performance appraisals not applied fairly can be counterproductive and even destructive to

It is been said by some that appraisal cannot serve the needs of evaluation and development at the same time. it must be one or the other. The researcher believe there must be an acceptable middle ground, where the need to evaluate employees objectively, and the need to encourage and develop them, can be balanced.

Erasmus, Swanepoel, Schenk, van der Westhuizen and Wessels (2005: 268,269) state that performance appraisal is a formal and systematic process which the job-relevant strength and weaknesses of employees are identified, observed, measured, recorded and developed. The performance appraisal

Today, performance appraisal is used for developmental and motivational purposes in the organization. It is not a stand still evaluation activity, but a dynamic process which should be viewed as follows- planning the employee’s performance and evaluation, and improving the performance of employees. The process brings the new concept Performance Management. Performance Management is essential for today’s organization to integrate the management goals and employees performance. It is a system for integrating the management of organization and employee performance in order to support and improve organization’s overall business goals.