Performance Appraisal.

One of the most important issues in human resource management is the appraisal of employees' performance (staff, managers) (Eder, 1982). 

This is an organizational and managerial issue. It is an organizational issue because it does planning, organizing, leading, directing, and controlling appraisal activities to make the appraisal more efficient. It is a managerial issue due to managers' involvement in the appraisal, which aims to advance the quantitative and qualitative performance of the work and orient all activities towards achieving the goal. These two issues must be harmonized (Kutllovci, 2004).

The notion of performance means the employee's knowledge and skills to understand and perform the job effectively, the knowledge in analyzing and synthesizing issues, and the experience and other special characteristics that a job requires (Leopold et al., 1999).

A performance appraisal is a periodic evaluation of an employee's job performance as assessed by the organization's competency standards (Eder, 1982).

The performance evaluation frequently incorporates both the organization's core competencies and the competencies unique to the employee's position (Marcoulides, 2008).

Based on the assessment, the appraiser, who is usually a supervisor or manager, will provide the employee with constructive, actionable recommendations (Leopold et al., 1999). This, in turn, gives the employee the guidance they need to progress and develop in their position. A performance assessment can also be an opportunity for the organization to celebrate employee successes and future potential, depending on the sort of feedback provided (Wynne, 1997).

The purpose of a performance appraisal.

A performance assessment has two purposes: it assists the organization in determining the value and productivity that employees bring, and it also assists employees in their own role development (Rhee, 2020).

Benefits for the organization:

Employee assessments can make a difference in the performance of an organization. They provide insight into how employees are contributing and enable organizations to (Chingos, 2002):

Identify areas where management may improve working conditions to boost productivity and quality of work.

• Before they have a negative impact on departmental productivity, address behavioral difficulties.
• Encourage employees to contribute more by recognizing their talents and skills
• Support employees in skill and career development
• Improve strategic decision-making in situations that require layoffs, succession planning, or filling  open roles internally

Benefits for employees:

Performance appraisals are meant to provide a positive outcome for employees. The insights gained from assessing and discussing an employee’s performance can help (Chingos, 2002):

• Recognize and acknowledge the achievements and contributions made by an employee.
• Recognize the opportunity for promotion or bonus.
• Identify and support the need for additional training or education to continue career development.
• Determine the exact areas in which you can develop your talents.
• Motivate a worker by making them feel connected and invested in their advancement.
• Discuss an employee's long-term ambitions openly.

Performance management Vs Performance appraisals.

It's no wonder that some people can't tell the difference between performance management and performance reviews because they have similar titles and sometimes overlap (McGEE, 1992).

In truth, performance appraisals are frequently used as part of the performance management process, however, some firms still rely solely on them. The distinction between the two can be summarized as follows: performance appraisals are reactive, whereas performance management is proactive (Certo and S Trevis Certo, 2019).

A performance assessment evaluates an employee's prior activities over a period of time and assigns a score based on how well they performed in their role and how many objectives they achieved. Performance management takes into account an employee's current and future performance, as well as what may be done to help them achieve their goals. Performance management is concerned with an individual's development and advancement, as well as how this might benefit both the employee and the company (McGEE, 1992).

A performance appraisal is a formal, operational task, done according to rigid parameters and in a quantitative manner. HR leads performance appraisals, with input from management. Performance management is much more informal and strategic, led by management with input from the employees in a more flexible manner (Ibrahim Ariff, 2007).

Figure 1.0 (Performance Management Vs. Performance appraisal)

(Source: Guest, 1996)

Table numbers 1.0 & 2.0 distinguish between performance management & performance appraisal.

Performance management and performance appraisal are distinct terms. Here are the key differences between performance management and performance appraisal:

Table 1.0: Performance Management Vs. Performance appraisal

(Source: US Air force, 2004)

Table 2.0: Performance Management Vs. Performance appraisal

 List of References:

Certo, S.C. and S Trevis Certo (2019). Modern management : concepts and skills. New York, Ny:        Pearson.

Chingos, P.T. (2002). Paying for performance : a guide to compensation management. New York:            Wiley.

Eder, R.W. (1982). Increasing Productivity Through Performance Appraisal/Assessing                            Performance AppraisalIncreasing Productivity Through Performance Appraisal, by Latham Gary P.        Wexley Kenneth N.. Reading, Mass.: Addison-Wesley, 1981, $6.95 paper.Assessing Performance            Appraisal by Sashkin Marshall. San Diego, Cal.: University Associates, 1981, $17 paper.                        Academy of Management Review, 7(4), pp.644–647.

Guest, D E et al ed., (1994). Performance management is concerned with assumptions, mutual                 obligations, expectations and promises.

Ibrahim Ariff (2007). A practical approach guide to rffective human resource managemnet.                    Selangor: Leeds Publications (M) Sdn. Bhd.

Korea International Trade Research Institute, 16(6), pp.651–667.

Leftwich, L.M. and Project Air Force (U.S (2004). Organizational concepts for purchasing and             supply management implementation. Santa Monica, Ca: Rand.

Marcoulides, G.A. (2008). Performance Appraisal: Issues of Validity. Performance Improvement          Quarterly, 2(2), pp.3–12.

McGEE, K.G. (1992). Performance appraisals can help increase communication and individual            performance. Nursing Management (Springhouse), 23(8), pp.36–37.

Rhee, S.-Y. (2020). Effects of Perceived Appraisal Purpose, Procedural Justice, and Attributional            Behavior on Ratee’s Accountability: In the Context of Multi-Rater Performance Appraisal System. 

Stephens, B. (2001). Strategic Human Resourcing: Principles, Perspectives and                                        Practices20013John Leopold, Lynette Harris and Tony Watson (Eds). Strategic Human                             Resourcing: Principles, Perspectives and Practices. London: Financial Times Pitman 1999. 470            pp., ISBN: ISBN 0 27 3 63164 0 £24.99 (paperback). Personnel Review, 30(1), pp.119–126.

Wynne, B. (1997). Performance appraisal. London: Ft Pitman.