Challenges of Performance Appraisal - Essay Example

Has Performance appraisal been faced with challenges organizations since the onset of the 21st century? Case Study: AMERCO Company Name Course Code Institution Has Performance appraisal been faced with challenges organizations since the onset of the 21st century? Introduction Employees in any organization play a bigger role in determining the level of achievement and success. If well and properly motivated, employees can be key assets in ensuring that all operations go as planned. Performance appraisal is thus used as a tool and key factor in ensuring that the organization’s visions are accomplished. At AMERCO Company, performance and appraisal as a strategic tool, is not normally supported by all employees. It is a function of Human Resource department and contributes towards maximizing individuals’ potential. The concept explores issues in an organization such as the challenges arising from appraisal activities. The quality of service at AMERCO Company is sustained by the workforce. Performance appraisal activities improve the morale, commitment and progress of employees within the company. Performance appraisal is a system that is deployed upon employees and encompasses evaluating and measuring the attributes, behavior and performance on the basis of a pre-set objective. Several terms have been used by linguists to refer to performance appraisal. They include; personnel rating, employee evaluation, and merit evaluation. Performance appraisal as a process can be complicated and influenced by several factors. At AMERCO Company, the evaluation process is aimed at describing the relevant strengths and weaknesses of individuals and their performance within the company. Different organizations use different methods and approaches to achieve the appraisal process. The different methods have their advantages and disadvantages and the focus on the methodology is crucial to ensure success. Performance appraisal serves a number of functions at AMERCO Company. Employees can receive feedback about their performance. This enables the individual to know their weakness and areas that need to be worked on so as to improve. It also helps in determining who gets promoted. Promotion at AMERCO Company is based on the performance of employees. From the results of the appraisal process, the management can identify the hardworking and committed employees and promoting them. Performance appraisal encourages performance and improvement. When colleagues are promoted, other individuals in the workforce get motivated to work harder and improve on their weaknesses. Appraisals are used counseling, poor performers. Since employees at AMERCO Company play a vital role in determining the accomplishment of an organization’s vision, poor performers need to be counseled and enlightened to avoid stagnancy in the overall progress. When determining if there is need to review the levels of compensation, the concept of performance appraisal come in handy Performance appraisal works to ensure that those who work harder receive a better pay. Performance appraisal determines individual training and development needs. If during the appraisal individual’s air their views on challenges faced, then good decisions can be made concerning the skills and competencies that need equipping. Organizational training and development needs are enhanced through performance appraisal. Decisions concerning the running of AMERCO Company are determined through the process of performance appraisal. Training is carried out within the company and data obtained by training and development professional that are then used to come up with crucial resolutions. Performance appraisal procedures enable AMERCO Company to establish performance expectations to all the company employees and assess exactly how well each person is fairing. Performance appraisals help in encouraging coaching and mentoring potential talents that lay idle. Performance appraisal analyzes the areas where coaching is necessary and encourages managers or the supervisors to take an active role in coaching. For performance appraisal to be carried out, two parties have to be involved. That is the rater and the ratee. To conduct the process, both parties have to be enlightened about the organization’s mission, vision, and objectives. The Board of Directors in any organization is thus responsible for the coordination and supervision of the entire appraisal process. The workforce to be evaluated is best referred to as the subordinate. The subordinates can, therefore, play both roles as either the raters or the ratees. Hence in any organization, it is the individuals of the higher post who evaluate, the lower level employees. Performance appraisal turns out to be a progressive process whereby the rater will be evaluating the ratees continually. It is thus a reciprocal process, and its success is determined by the understanding and cohesion between the raters and ratees. For performance goals to be effective, the characteristics to be embraced are specific, measurer able, attainable, relevant and timely. It is the responsibility of the raters to ensure that the evaluation accurately reflects and focuses on the performance of the employees. Some of the common errors that supervisors make in performance appraisal. Leniency: Some supervisors rate employees based on how they feel rather than the objective performance. Horn effect: This is where one rating dimension affects the overall rating. For instance, an employee is unable to work in team rates very high in dependability. Central tendency: This is a problem associated with rating everyone on average regardless of their performance. Contrast effect: This rates employees based on comparison with others rather than on the job description. Being Bias: Some supervisors at the company find it hard to rate employees as good in performance due to their differences in religion, race or even ethnic background. Performance appraisal cycle entails four key stages: Performance planning, performance execution, Performance assessment, and performance review. In the beginning, both the rater and the ratee must first agree on how the appraisal process is to be conducted. The supervisor should review the description of the position to be evaluated and thereby determine the specific factors to be considered. It is necessary that one selects the areas that the employee needs to concentrate on as “what gets measured gets done.” The job elements to be evaluated must also be made clear between the two parties. The goals set for the employee should also be determined in this first stage. Once in is clear on how the evaluation process will be conducted, both the rater and the ratee should sign the appraisal form and a copy issued to the ratee. As the evaluation progresses, the supervisor should regularly have a look at what is happening and discuss in details with the employee. Entries are carried out in the Log book and each entry well discussed with the employee and a copy issued. Any issues that show up should be addressed, and measures to counter the issues should be set up. At about 30 days before the actual yearly appraisal is conducted, the supervisor should ensure that the employee is aware of the expected meeting time and place and how all documents are to be presented. On the actual day, all the forms are to be reviewed in the presence of the employee and discussions conducted as well. After the appraisal is done, all the forms duly signed by both the employee and the supervisor, are to forward to the Human Resource Manager. Performance appraisal is however faced by a number of challenges. The following are those that have taken foot especially in the 21st century. Performance appraisal activities are faced with the issue of non-fairness. If a performance of individual employees is not evaluated correctly, the whole appraisal system can be dissatisfactory. Some raters tend not to be fully enlightened with the knowledge and skills required for appraisal. This often leads to unreliability because employees will end up not trusting the tools of evaluation. During the appraisal process, the evaluation turns to be subjective. This discourages employees in supporting and working with tools of measuring performance. In this case, the objective of performance appraisal fails to be achieved. The quota system embraced in some organizations creates dissatisfaction. This is because after a review of performance and only a few of the staff in an organization receive a salary increment, other employees feel discriminated. Nowadays, appraisal decisions are faced with lots of criticism especially from labour unions. In conclusion, Performance appraisal activities play a vital role in the success of at AMERCO Company and should be greatly emphasized. Still, although performance appraisal is to be viewed positively, it is significant to create room for new ideas and solutions. Therefore, performance appraisal systems need to be revised to meet the needs and the challenges of the 21st century. References Catano, V.M., Darr, W. & Campbell, C.A. (2007) “Performance appraisal of behavior-based competencies: a reliable and valid procedure”. Personnel Psychology. Vol. 60 (1), pp. 201-230. Coutts, L.M. & Schneider F.W. (2004) “Police officer performance appraisal systems: How good arethey?” An International Journal of Police Strategies and Management. 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