Key Functions of a Performance Appraisal System.
The three key functions of a performance
appraisal systems are administrative, informative, and motivational.
For the administrative purposes, the appraisal
system is used to make decisions on determining promotion candidates and
transfers, identifying poor performance, deciding retention or termination and
layoffs, validating selection criteria, meeting legal requirements, evaluating
training programs, personnel planning, and reward or punishment decisions.
One of the most important administrative
purposes is providing legal defensibility for personnel decisions. Such
decisions can be justified if they are based on performance appraisal and need
to be documented for legal purposes (Monar Consulting, 2012) .
One imperfection of using performance appraisal
for administrative purposes is that organizations primarily focus on past
performance rather than looking forward and setting goals and objectives which
tie into the organizational strategy (Monar
Consulting, 2012) .
The performance appraisal system provides a
good opportunity to give as receive feedback between the employee and reviewer
including HR manager and employer. The performance appraisal is also a good
time to establish new goals. The reviewer and employee can work together to
establish new goals as well as develop a plan to achieve them. Employee
appraisals are important for improving communications between the employee and
reviewer. By speaking openly about the job performance, the employee and
reviewer can develop a sense of trust. Performance appraisal system can also provide
key information to help evaluate recruiting practices. This could be conducted
by analyzing the data of the newly hired employees. If a high percentage of
them are not doing well, this means certain measures shall be adopted to
improve the recruitment process. (Joseph , n.d.) .
Performance appraisal serves as a motivation
tool. Through evaluating performance of employees, a person’s efficiency can be
determined if the targets are achieved. This motivates a person for better job
and helps him to improve his performance (MSG , n.d.) . The employee would
be motivated with positive feedback given and company ambitious planning shared
during the appraisal time. With promising forecast plan to be determined by the
organization, the employee could be motivated to work more productively to
achieve the common goal with the organization, especially for those performance
based roles, such as sales and customer services.
Goodman, N. R. (2014, February 04). Six Steps for
Successful Expatriate Training. Retrieved from Association for Talent
Development :
https://www.td.org/Publications/Newsletters/Links/2014/02/Six-Steps-for-Successful-Expatriate-Training
Joseph , C. (n.d.). Importance of Effective
Employee Appraisals. Retrieved from Chron:
http://smallbusiness.chron.com/importance-effective-employee-appraisals-10408.html
Monar Consulting. (2012, March 20). Performance
Appraisals: Development vs. Administrative. Retrieved from
http://www.monarconsulting.com/consulting/2012/03/20/performance-appraisals-development-vs-administrative/
MSG . (n.d.). Performance Appraisal.
Retrieved from Management Study Guide :
http://www.managementstudyguide.com/performance-appraisal.htm
Robin. (2011, June 20). Expatriate Training and
Development . Retrieved from Strategic HR inc. :
https://strategichrinc.com/expatriate-training-and-development/
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