What is Performance Appraisal? Performance appraisal (PA) is a major human resources activity. Decisions made by PA affect carrier development and economic well beings like salary, promotion, transfer and training. PA is based on the appraisal of one person by others, therefore it can be considered as a social justice which should be accurate, fair and relevant.
There are a certain reasons for PA: 1) To mould employee behaviour according to the company determined norms, it is a mean of increasing the element of control over the employment.
2) To enhance the consistency between employee actions and corporate goals in order to bring coporate objectives to the employee.
3) To improve the quality of human resources planning 4) To improve the quality of salary reviews 5) To provide a record in case of dismissal, demotion, grievance or appeal and therefore employee needs to be able to justify their actions.
There are three roles of HRM in Performance Appraisal. Firstly, it designs the appraisal system, secondly, it provides training to those who are involved in itÃÂÃÂ¡ÃÂÃÂ¦s implementation. Lastly, it acts as a data collection and data storage point.
Informal Appraisal conducts on a face to face basis. It mostly occurs in small organisations. The advantages of Informal Appraisal include the tendency to be more intimate than formal ones, a greater flexibility and immediate feedback.
In the early stages of PA, it tends to be subjective. It is because it relies on the informal judgement of the personality traits of the employee, which is called the merit rating system. But, this system is usually unreliable and invalid. Judgements for this system are difficult to communicate with the employee and it does not provide an adequate or workable guide to improve wok performance for the employee.
In todayÃÂÃÂ¡ÃÂÃÂ¦s appraisal system, it...