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.


References

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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