Effective Performance Appraisal

Title: creating effective performance appraisal system

Author name: Clinton O. Longenecker and Laurence S. Fink

About authors: Mr. Clinton Ph.D. is the stranahan-distinguished professor of management at the university of Toledo And Mr. Laurence Ph.D. is an assistant professor of management at the university of Toledo. He holds a B A in psychology from the state university of New York at Albany an a PhD D in organizational behavior/human resource management from Purdue university.

Introduction:

This article is about why creating effective performance appraisal is important because Performance appraisal is a good way for organizations to increase their employee’s motivation and also create a good competitive edge. But creating an effective

For which we identified the 10 lessons of performance appraisal.

Effective system design:

A good system design provides the managers with the necessary tools.

Lesson 1: Clearly defined value added purpose for appraisals:

With clear defined goals or purpose in the performance appraisal it enables the managers to set the criteria of appraisals that support the organizational goals. Without clear goals it is difficult for managers to set the appraisals according to the criteria, which can than affect the quality of performance appraisals system. Also clear goals increase managers motivation and when they conduct the appraisal they also know that information collected from them affects the employees motivation, development and performance planning etc.

Lesson 2: Employee/manager involvement in appraisal system design:

Involvement of both employee and manager is very useful for an effective appraisal system. If employees are involved at all levels in the performance appraisal design then their sense of ownership increases and also their cooperation increases. If we exclude the employee’s involvement in the appraisal design then their motivation decreases also the employees commitment to organizational goals decrease and also they feel

Top-level management shows support by practicing the same appraisal practices when they appraise managers.

Lesson 9: appraisal outcomes linked to performance ratings

In this our research indicates that employees will be motivated when their rated performance is according to their performance and also it links performance rating to organizational rewards. On the other hand employee will get demotivated when they feel that rated performance is not accurate, the rating is not set on their standards then their motivation decreases and they prefer to engage in theft or quit.

Lesson 10: ongoing system review and corrective actions

Performance appraisals can be effective and useful for the organization when the organization will get benefited from this.so the organization should take ongoing reviews of feedback of their appraisals to make sure that it works effectively or not and take corrective actions before and after the performance reviews. Because ineffective appraisals can negatively affects the organizations and individual performance. The three components of effective performance appraisals are important and managers should focus on all these components and did not miss anyone of them and complete each stage of appraisal process