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Introduction To Performance Appraisal

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1.1.9. Introduction to Performance Appraisal

Performance appraisal is one of the most significant theories of human resources management and is one of the subjects which have been studied and investigated in the psychology of work extremely (Kuvaas, 2006). Khan (2007), states that the fundamental objective of performance appraisal is to facilitate management in carrying out administrative decisions relating to promotions, firings, lay offs and pay increases. Coens and Jenkins (2000) suggest that performance appraisal is a process in which work behaviors or traits of all or a group of employees’ are rated, judged or described individually for a specified period of time by the rater and the results retained by the organization.

Employee Performance …show more content…

Dharma.B.Naik has explained Performance Appraisal emphasizing on its two aspects: systematic and objective. The appraisal is systematic when it evaluates all performances in the same manner, utilizing the same approaches so that appraisal of different persons is comparable. And it is objective as it attempts at accurate measurement by trying to eliminate human biases and prejudices. Berman (2005) asserts that Performance Appraisals are essential for career and succession planning - for individuals, crucial jobs, and for the organization as a …show more content…

31). In reference to Latham and Latham (2000), recommendations, if staff is to have positive attitude towards the appraisal system, the Performance Appraisal should undergo regular review and improvement.

Institute for Corporate Productivity (2011) in its research on Tying Pay to Performance Report, shows that nearly half of high-performing organizations indicate that recognizing and rewarding high-performers is the main driver of their pay for performance strategy, making it number one on the list of primary drivers. Low-performing organizations are not as confident in the effectiveness of their pay for performance strategies as high-performers.

General employee participation in his/her own appraisal process was positively correlated with employee reactions to the PA system (Caruth and Humphreys, 2008). Employee participation in the appraisal process was most strongly related to employee satisfaction with the PA system. PA can help facilitate management-employee communication; however, PA may result in legal issues if not executed appropriately (Schraeder and Portis, 2007) as many employees tend to be unsatisfied with the PA process (Sudarsan,

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