Performance Appraisal

1. Performance Appraisal An introduction and overview

2. What is performance appraisal? • Employee Assessment – the assessment of an employee's effectiveness, usually as undertaken at regular intervals • Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor in which the work performance of the subordinate is examined and discussed • with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills’ development • What does it get used for?

3. Appraisal is both inevitable and universal • Dulewicz (1989), "... a basic human tendency to make judgments about those one is working with, as well as about oneself." • The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. • Without a structured appraisal system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate.

4. Historically speaking • As a distinct and formal management procedure used in the evaluation of work performance, appraisal dates from the time of the Second World War (not more than 60 years ago) • almost everything in the field of modern human resources management can be traced to Taylor’s pioneering Time and Motion studies • Appraisal could claim to be the world's second oldest profession!

5. The start of a system • Performance appraisal systems began as simple methods of income justification. • The process was firmly linked to material outcomes. • If an employee's performance was found to be less than ideal, a cut in pay would follow. • If an employee’s performance was better than the supervisor expected, a pay rise was in order. • Sometimes this basic system succeeded in getting intended results; but more often than not, it failed.

6. Motivational researchers have shown that different people with roughly equal work abilities could be paid the same amount of money and have different levels of motivation and performance. • Pay rates are shown to be important. • But, other elements matter! For example, morale and self-esteem, can have a major influence. • In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.

7. Controversy in performance appraisal • Researchers, management commentators, psychometricians have expressed doubts about the validity and reliability of the performance appraisal process. • Some have suggested that the process is so flawed that it is impossible to perfect it. • There are some advocates of performance appraisal who view it as potentially "... the most crucial aspect of organizational life" (Lawrie, 1990). • Others believe that performance appraisal has many uses, but scorn attempts to link the process to reward outcomes (raises and promotions), as it reduces developmental value.

8. Consider this… • How many people would gladly admit their work problems if, at the same time, they knew that their next pay raise or a much-wanted promotion was riding on an appraisal result? • In situations like that, many people would deny or downplay their weaknesses. • But, if you do not link appraisals to rewards, those being ‘evaluated’ may feel the process is a sham or a waste of time.