Defining Performance Appraisal:Method by which the job performance of an employee is documented and evaluated. Performance appraisals are a part of career development and consist of regular reviews of employee performance within organizations.HUMAN PERFORMANCE IN ORGANIZATIONS:Areas of work based on Job Analysis.How good or bad performance by the employee is, evaluated though internal comparisons or comparable rating standards. And after all the information is gathered feedback is generated and coaching workers takes place.THE THREE STEPS IN PERF. APPRAISAL ARE:1. IDENTIFICATION: determining which areas of the work the manager should be examining when measuring perf. Usually based on job analysis. Appraisal system measures performance that affects organizational success.2. MEASUREMENT: making managerial judgement of how good or bad performance was. All managers should maintain comparable rating standards.3. MANAGEMENT: is the overriding goal of any appraisal system. It shall contain past oriented activity and evaluation but also future oriented view of what workers may improve.
The performance appraisal cycle shows how employees are at constant development as the steps will follow each other:1.Providing feedback to the employee and taking corrective action to eliminate performance deficiencies
2.Establishing goals and performance standards3.Assessing the employee’s actual performance relative to those standards.Providing feedback to the employee and taking corrective action to eliminate performance deficiencies. It must add value to the firm, not only used as a measurement unit.Purpose of Performance Appraisal:Administrative: Looking at the past and Developmental Looking at the future.Administrative used whenever they are the basis for a decision. Is based upon results and root causes for performance such as salary review, promotions or employees track record.
Development is centered in the necessary action to improve performance and strengthening their job skills. Such as a change in organization or processes, changes in job design, feedback to the employee or training and development actions.