Performance Appraisal in Human Resource Management

Essay by wrichardUniversity, Bachelor'sB+, August 2006

download word file, 10 pages 4.5


Rapid environmental change, globalization, competition to provide innovative products and services, changing customer and investor demands have become the standard backcloth for organizations. To enhance competitive advantage has been the business strategy of the most organizations. Recent theoretical works on business strategy have indicated that organization competitive advantage could be generated from strategic human resources management (SHRM). Integration with HRM strategy with the rest of business strategy is that firm performance is influenced by a set of HRM practices in the senior management process (Boxall & Purcell, 2003). This has been supported by recent empirical evidence (Arthur, 1994; Huselid, 1995; MacDuffie, 1995). However, important questions remain, including whether SHRM guarantees positive firm performance outcome and the effect of different levels of SHRM implementation on firm performance in moderating the relationship between SHRM and firm performance. In another word, the relationship between HRM practices and organizational performance needs our further exploration.

Here in this essay, the relationship between appraisal and organizational performance will be discussed:

Performance Appraisal

All organizations must face up to the challenge of how to evaluate, utilize and develop the skills and abilities of their employees to ensure that organizational are achieved, and also to ensure that individuals gain as much satisfaction as possible from their jobs while making effective contributions. As competition in many markets becomes more intense and global in nature, the importance of performance appraisal has been recognizing as a key element of strategic human resource management (ANDERSON, 1993).

Performance appraisal may be defined by Dessler (1997) as any procedure that involves:

Setting work standards

Assessing the employee's actual performance relative to these stands

Providing feedback to the employee with the am of motivating to eliminate performance deficiencies or to continue to perform above par.

And four principal activities of the performance...