Performance Appraisal

Essay by sharonulysses March 2009

download word file, 15 pages 5.0

IntroductionIn this contemporary world where every organisation is trying to maximise its production and operational wealth so in this crucial situation the performance management is become very important factor. Information about organizational performance, competitors, and other business environment factors is essential for organizational competitiveness. However, gathering and reporting relevant information in an accurate, complete, and timely manner is often a sizeable challenge. Additional challenges are brought about in complex contemporary management environments that include: increased internal organizational business diversity, geographic dispersion of business units, more and increasingly complex federal, state and local reporting requirements, as well as rapidly changing business and accounting reporting standards.

Most organizational performance measurement and improvement approaches provide primarily high level, qualitative guidance to help organizations identify their performance measures. Issues concerning the many tradeoffs, which must be considered before a final set of measures is selected, are rarely mentioned. The logistical requirements associated with the collection, processing, transmission, security, and reporting of the data required for each measure are also rarely discussed.

Performance appraisal in generalBy definition, Performance appraisal generally includes performance planning, i.e. goal setting, ongoing coaching and development of subordinates, formally reviewing performance and rewarding performance. It was first introduced by Michael Beer as an innovative appraisal and development system that combines the developmental facet of performance appraisal with the goal-setting facet of MBO. At the time it was considered to be an improvement on the performance appraisal system, which was generally considered as subjective and plagued by rating problems (Albrecht, 2000).

In considering the value that could potentially be added by Performance Management, it is important to bear in mind that Performance Management as a process was developed because of the failure of performance appraisals. In essence, Performance Management represents a move from an isolated, mechanistic, HR-driven approach to performance appraisal...