Performance management is the process of creating work setting in which people are enabled to perform to the best of their abilities. Performance management system is a whole work system that begins when a job is defined as needed and ends when an employee leaves the company (Heathfield, n.d). The goals of performance management are to improve employee performance, develop people for promotional opportunities, and ensure that employees are working towards the companies' goals (BNET, 2003).
Analyzing employee performance has been a way for companies to determine how well an employee performs at his or her job. This is how promotions, raises, and the decision of whether or not an employee remains on the job are determined. How this differs from annual performance appraisals are annual performance appraisal is procuring, analyzing and documenting of information and facts about an employee's worth to the organization. It aims at measuring and improving the employee's current performance and tapping in on the future potential.
An annual appraisal helps determine if an employee will remain on the job and what employees' need additional job training (Moorty, n.d). An annual performance helps supervisors set goals for the upcoming year, and report employee success in meeting performance expectations (BNET, 2003).
Some performance appraisals are done to rank each employee and other are done by breaking down performance to evaluate individual attributes, behaviors or results (Noe, Hollenbeck, Gerhart, & Wright, 2007). Some performance appraisals methods are comparisons rankings, graphic rating scales, behavioral rating scales, critical incident method and 360 degree feedback. Comparison rankings are done to measure best to worst of an individual performance. Comparison can also be done ranking one employee to another employee's performance. One of the oldest methods used is using graphic rating scales to measure an employee's level of performance. Behavioral...