Performance Appraisal Theory

1123 Words5 Pages
Perhaps formal appraisal was used for the first time in USA in the year 1883 by the Federal Government for New York City Civil Services and by certain city administrators. During the latter part of the nineteenth century, the real thrust to appraisal in business came as a result of the work measurement programme of Frederick Taylor and his followers before World War I. Similarly, with widespread awareness of human relations factors in management in the early 1930s and 1940s, behavioural traits such as the ability to get along with others obviously tended to become dominant in performance appraisal systems.
In USA, the early appraisal systems were almost inevitably aimed at the evaluation of hourly workers rather than of managers. The concept
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However, the performance appraisal scheme still has a long way to go all over the world. The scheme continues to remain one of the weaker aspects of management. The contributions of management experts like Peter Drucker through his Management by Objective (MBO) theory are valuable in the development of the result-oriented evaluation scheme. Therefore, the development of performance appraisal has been evolutionary rather than revolutionary in character. Although the concept of performance appraisal pertains to various professions, it has greater significance for the assessment of the performance of employees working in different organisations. It is due to this reason that the performance of individuals in social circles does not carry much weight whereas the good or bad performance of an employee makes a big difference. The performance appraisal system is one of the important tools of management apart from manpower planning, motivation and communication. It is directly concerned with organisational policies. The management theories are based on practical…show more content…
Performance appraisal is just a small part of the whole performance appraisal process. [T V Rao] The two components needs to be considered while understanding the definition of performance management are continuous process and linking of mission and goals of the organisation. Here, continuous process means that the performance management is a never-ending process of setting goals and objectives, observing performance and giving and receiving ongoing coaching and feedback. The linking of mission and goals of the organisation means that there should be congruence of individual and organisational goals. This goal congruence leads to achieve a competitive advantage. Hence, the performance management can be defined as a continuous process of
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