Performance Appraisal and Management A worker digging a road using a pneumatic d
ID: 366695 • Letter: P
Question
Performance Appraisal and Management
A worker digging a road using a pneumatic drilling machine Linking individual performance to organizational success is a difficult task in the simplest of environments. It is, however, an extremely important piece of the HR puzzle; especially when the context is global. Employees are able to improve their performance and develop their KSAs (knowledge, skills and abilities) faster if they know what they are doing right and what they are doing wrong. So, an accurate performance appraisal offers the prospect of helping employees reach their full potential sooner rather than later. Secondly, performance appraisal can also help ensure employees see a connection between their performance and the rewards (e.g., compensation) they receive. These two objectives, however, can compete with one another when one appraisal is used to fulfill both. If the appraisal is developmental, it is important for both the employee and his/her manager to have an open discussion on the employee's strengths and weaknesses with a goal of identifying steps to be taken to help the employee reach his/her potential. It is difficult for this type of conversation to take place, if the appraisal also is used to allocate rewards (e.g. pay increases, bonuses).
Does the performance appraisal process where you work get used to fulfill more than one purpose?
Do you think it fairly measures your performance?
What would you change about the system if it was up to you?
Explanation / Answer
Performance appraisal process is an important tool that is used by the HR managers for employee’s growth and development. It can also turn into a nightmare for both the employer and the employee when it’s not planned and implemented effectively. The case highlights how performance appraisal process can help employees know what are they are doing right and what they are doing wrong and in the process acts as a catalyst in helping them reach their highest potential. However, when the same performance appraisal is used to link the employee’s performance with the rewards that he/she receives, it becomes a destructive tool and does not serve the purpose anymore.
In the organisation where I work, the HR managers used to make the same mistake initially. At one end, the supervisors were advised to use the performance appraisal process as a tool to help employees identify what is expected of them and to encourage them on doing the right things. But honestly, none of them actually knew what is right and what is not right. Some of them were fresh college graduates, who never had any opportunity of working in corporate, didn’t even knew what the organisations want from them and what are they supposed to do. Although, supervisors regularly motivated them on improving their performance and KSA i.e. knowledge, skills and abilities and in turn helping them realise their full potential. Why it didn’t contributed to their development is because the supervisors also used the same performance appraisal to link rewards with their performance. This contributed in a negative way because it discouraged an open discussion on their sub-ordinate's strengths and weaknesses with them.
Having similar performance appraisal process to fulfil both the purposes does not fairly measures the employee’s performance. Ideally, the performance appraisal process should create an environment in which the employee can identify his strengths and weaknesses, in which he can focus on the positives and grow to his peak potential. When an employee realises his true potential, that is when the organisation will start benefiting more from the employee’s contributions. Therefore, the same performance appraisal cannot be used to decide employee’s rewards.
In my suggestions, every organisation should try to rethink their approach on performance appraisal process. I would recommend the following considerations:
- Instead of making performance appraisal an annual activity, managers should focus on providing regular feedbacks. The entry level employees specially, like getting regular feedback from their managers. They like being corrected if they go wrong and appreciated when they do better by their managers. This makes growth and development a regular and on-going process.
- In most of the organisations, performance appraisal is a one-sided activity where the managers call the employees, dictate them how well or poorly they performed, whether they met the organisations’ expectations or not and then expect them to improve. The process should be a two-way one where the employee should get to speak more. The manager should take the role of a listener. In this way, organisation will get to know the problems of their employees and the factors affecting their growth.
- Setting performance goals of each employee at the beginning of the year is extremely important. Discussing these goals with the employee and understanding from them how they are going to achieve these goals creates a positive impact. The employee feels that the organisation believes in his abilities of planning and accomplishing goals.
In this way, the performance appraisal process can become mutually rewarding for both the employee and the organisation.