Evaluating Employee Performance Appraisal System

Chapter No. 1

Introduction

1.1 BACKGROUND

Evaluating employee performance is one of the management tools commonly used in the world whereby the work performance of an employee is evaluated A critical element influencing the success of an appraisal system is the reaction to the system of the persons being evaluated. A performance evaluation is a guide and carrier development management is the process of analyzing and recording information on employee Performance successes and failures, strengths and personal weaknesses, and suitability for promotion or development. It is also stopping the performance of an employee in a job Performance assessments can be a good way for organizations to improve employee motivation and competitive edge.

In the U.S and European countries many researchers have been conducted on the issue of fairness perception of employee appraisal system but this issue is still under darkness in Asian countries like Pakistan.

Despite its wide use, or perhaps because of it, the practice of formal performance appraisal continues to come under considerable control and criticism. Different levels of system of their organization. like stereotyping, halo effect (ie, employees have different perceptions of performance evaluation of a trait affect the rating of the evaluator for all other characters), etc. may occur in the assessment process. Therefore the fairness in evaluating and rating the performance of the employee is needed. (Mirsepassi, 1998)

Performance assessment is one of the most widely studied industrial and organizational psychology (Murphy & Cleveland, 1991.) Researchers have developed and have implemented various changes to the assessment criteria, assessment instruments and assessment procedures to improve the accuracy and perceived fairness of the process (Banks & Murphy,

These include: deception, invasion of privacy of the employee, the disrespectful treatment and derogatory judgments. Deception occurs when a supervisor 's words and actions are inconsistent, as, for example, when a supervisor promises to give incentive or increase wage on his better or improved performance, but it refuses to honor this promise. (Bies 2001)

Employees obviously expect confidence in the employment relationship, and a sense of injustice when that trust is violated. Perceptions of fairness are usually classified as distributive process (Swiercz, Icenogle, Bryan and Renn 1993, Erdogan et al 2001) .

Attitudes and beliefs regarding the organization and evaluation system affect the way assessments are made and how information is processed. These beliefs influence the usefulness of evaluations. Their findings showed that trust about the system performance assessment and referral process, evaluator explains the tendency to give higher marks compared to lower and discrimination between the spleen and size grading People definitely do not want that information about themselves revealed to others, who have no reason to know about it. (Tzin, Murphy and Cleveland