The goal of this article is to look at how the employee performance management (PM) process has evolved and where it might go in the future. The PM literature analyses the main management and psychology journals over a 20-year period in order to do this. In contrast to the narrow approach of performance appraisal, the paper focuses on the broad and comprehensive topic of employee PM (Claus and Briscoe, 2009).These two processes have a significant and important difference, although they are commonly misconstrued by both practitioners and academics.(Maley, Marina and Moeller, 2020).
The supervisor-employee interview, in which employees are normally evaluated once a year using a set of characteristics and given a score, is referred to as a performance appraisal (DeNisi and Murphy, 2017). Furthermore, performance appraisal has a tumultuous history linked to control, hierarchical management, and, more recently, complex information technology processes, all of which have led to rising dissatisfaction among supervisors and employees (Adler, Campion, Colquitt, Grubb, Murphy, Ollander-Krane, and Pulakos, 2016).
PM was created in the early 1990s to solve the well-documented shortcomings of traditional performance appraisal (Arvey and Murphy, 1998).PM involves a much broader variety of management activities, such as career management, training and development, regular feedback, and reimbursement concerns, among others (Aguinis, 2007).Unlike the once-a-year event of evaluating performance expectations, PM is a continuous practice."PM is considered as an integrated process in which managers interact with their staff to set expectations, measure and assess results, and reward performance," according to Den Hartog, Boselie, and Paauwe (2004).
The Overview of Performance Management and Appraisal .
Performance Management.
As Aguinis (2019) states that performance management is a process by which managers and employees work together to plan, monitor and review an employee’s work objectives and overall contribution to the organization. More than just an annual performance review, performance management is the continuous process of setting objectives, assessing progress and providing on-going coaching and feedback to ensure that employees are meeting their objectives and career goals (Claus and Briscoe, 2009). A strategic and integrated approach to increasing the effectiveness of organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors (Armstrong and Baron ,1998).
Performance Appraisal.
Performance appraisal is an unavoidable aspect of organizational life (Brown, 1988; Longenecker & Fink,1999).Many decisions in modern organizations are based on performance appraisals, and they are widely used in the majority of organizations (Burkhalter & Buford, 1989; Davis, 2001; DeNisi, 1996; Wanguri, 1995).They are an important part of the process by which organizations attempt to direct themselves (Kreitner, 1998; Landy & Farr, 1983), and they have been regarded as a critical component in organizational success for the majority of the twentieth century (Grote, 2002; Pettijohn, Parker, Pettijohn, & Kent, 2001; Rasch, 2004; Starcher, 1996).Organizations can use performance appraisal to inform their employees about their rates of growth, competencies, and potentials. It enables employees to be deliberate in developing individual developmental goals to aid in their personal growth.
Source (Bassem, El Badawy and Magdy, 2019)
List of References.
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Aguinis, H. (2007). Update: New Editor Appointed. Organizational Research Methods, 10(2), pp.191–191. doi:10.1177/1094428107301548.
Aguinis, H. (2019). Performance management. Pearson/Prentice Hall.
Armstrong, M. and Baron, A. (1998). Handbook of Strategic HRM. NHRD Network Journal, 3(4), pp.104–104. doi:10.1177/0974173920100423.
Arvey, R.D. and Murphy, K.R. (1998). PERFORMANCE EVALUATION IN WORK SETTINGS. Annual Review of Psychology, 49(1), pp.141–168. doi:10.1146/annurev.psych.49.1.141.
Bassem, M., El Badawy, T.A. and Magdy, M.M. (2019). HR Managers’ Views on SHRM and Its Role in Influencing Organizational Performance. International Journal of Human Resource Studies, 9(4), p.221. doi:10.5296/ijhrs.v9i4.15495.
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Burkhalter, B., James Ansel Buford and Colleges, J. (1989). Performance appraisal : concepts and techniques for postsecondary education. Washington, D.C.: American Association Of Community And Junior Colleges.
Claus, L. and Briscoe, D. (2009). Employee performance management across borders: A review of relevant academic literature. International Journal of Management Reviews, 11(2), pp.175–196. doi:10.1111/j.1468-2370.2008.00237.x.
Davis, J.S. (2001). Approaches to performance appraisal in student affairs. College Student Affairs Journal, 21(1), 92.
den Hartog, D.N., Boselie, P. and Paauwe, J. (2004). Performance Management: A Model and Research Agenda. Applied Psychology, [online] 53(4), pp.556–569. doi:10.1111/j.1464-0597.2004.00188.x.
DeNisi, A. S. (1996). A cognitive approach to performance appraisal: A program of research. London: Routledge.
DeNisi, A.S. and Murphy, K.R. (2017). Performance appraisal and performance management: 100 years of progress? Journal of Applied Psychology, [online] 102(3), pp.421–433. doi:10.1037/apl0000085.
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Maley, J.F., Marina, D. and Moeller, M. (2020). Employee performance management: charting the field from 1998 to 2018. International Journal of Manpower, ahead-of-print(ahead-of-print). doi:10.1108/ijm-10-2019-0483.
Pettijohn, L. S., Parker, R. S., Pettijohn, C. E., & Kent, J. L. (2001). Performance appraisals: Usage, criteria and observations. Journal of Management Development, 20(9), 754.
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Wanguri, D. M. (1995). A review, integration, and a critique of cross-disciplinary research on performance appraisals, evaluations, and feedback: 1980-1990. Journal of Business Communication, 32(3), 267-293.
