Importance of Performance Management and Appraisal
What is Performance Management?
Performance management can be defined as “a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the people who work in them and by developing the capabilities of teams and contributors” (Armstrong, 2004)
Performance Appraisal Techniques
· Graphic Rating Scale - Rates employees on a fixed scale as per the qualities they are required to possess. The final score obtained classifies employees into various tiers and helps in their performance evaluation at the end of the year.
· Essay Performance Appraisal Method – This is a qualitative technique and not a quantitative technique. This includes detailed performance description of employees since practicality of this method is less.
· Checklist Scale – Checklist will be given according to the traits of an employee and If an employee has a particular trait, then it can be marked as Yes or No
· Critical Incidents - List of important incidents will be prepared by the highlighting the behaviour of an employee.
· Work Standards Approach - The management of a firm establishes fixed standards and the final deliverable prepared by the team involved has to be as per those points, and then, each member is evaluated. Manager is required to rank employees put into the same job and then evaluate them.
·
MBO
(Management by objectives) - managers
and employees collaborate in setting goals. It is effective because management
involvement reflects the mission of the organization. It motivates employees to
get more involved in their jobs and in the organization as a whole.
Performance
management is very important for organizations and businesses to stay focus on
how their staff is perform in terms of their work life. This enables to compare
and measure the performance to assure the success of the organization with
positive motivated employees. As mentioned above Organizations, managers and
employees are practicing good performance management all their lives, executing
each key component process well. Goals are set and work is planned routinely.
Progress towards those goals is measured and employees get feedback and rewards
accordingly. High standards are set, but care is additionally taken to develop
the abilities needed to succeed in them. Formal and informal rewards will be
awarded to recognize the behaviour and results that accomplish the mission.
References
Amstrong,
M. (2004). Human Resources Management Practice. 9th Edition. Kogan
Page: UK
Gephart,
M. 1995. The road to high performance. Training and Development.
The performance of employees is ultimately the performance of the organization. Therefore, performance management is utterly important to an organization. Your article very well explains the importance of the implementation of an effective Performance Management system. All the best.
ReplyDeleteOrganizations use performance assessments for several reasons such as to provide employee feedback, to enable employee self-development, to allocate compensation, to collect information for personnel decisions, and to guide the development of training and development efforts to notify them. This is a critical factor of employee motivation. Good luck Amila.
ReplyDeletePerformance appraisal is used foe several reasons such as future development, training needs, rewards etc. This article has clearly explained the methods can be used in performance appraisal
ReplyDeleteOrganizations must focus on how their employees perform in their work lives, which is why performance management is so crucial. This makes it possible to compare and measure performance in order to ensure the organization's success with happy, engaged employees.Good luck Amila
ReplyDeletePerformance evaluations are used by organizations for a variety of objectives, including providing employee feedback, enabling employee self-improvement, allocating remuneration, collecting data for personnel choices, and guiding the creation of training and development activities to alert them.
ReplyDeleteEmployee motivation hinges on this issue.
Amila, best of luck.
The process of gathering, reporting and analyzing the information about relative importance of staff to the company is referred to as performance appraisal. Performance appraisals give a broader view about the employees. Though this employee’s skills and limitations are revealed to the manager. So it can be efficiently utilized to achieve company’s goals. This is beneficial to the employee as well as the employer. You have clearly discussed about performance appraisal techniques. Well written article. Good luck.
ReplyDeleteAs you have clearly described, Employee dissatisfaction and criticism of the organization should be managed systematically through a good performance evaluation system, with rewards and promotions made in accordance with the performance management system. Good job Amila
ReplyDelete