(Module)(Instructor)August 18th 2009Abstract Performance appraisal is a management concept that has been heavily misunderstood and used in the wrong way. Ranking of employees using supervisors views on the subjects and is prone to bias. It sets employees against one another while employees tend to forget their core duty in employment and concentrate on impressing their seniors to obtain favorable ranking. However, when performance appraisal is approached in the right manner, the results are impressive both on individual employee productivity and overall performance of the organization. Introduction Edwards Deming is a renowned business management expert.
In many forums, he has shocked his fellow management experts in denouncing employee performance appraisals terming them as detrimental. On the other hand, there are those adamant in the belief that employee performance appraisal are beneficial to organizations management. The mainstream literature seems to be in support of performance appraisals eager to record how effective the procedure is. However, the modern approaches to performance appraisal do not display the characteristics that Deming seems to be against. This paper will thus seek to show that the traditional approach in performance appraisal that heavily relies on numerical ranking of employees, has a negative impact and at the same time show that modern approaches to performance appraisals lead to better performance of employees and organizations through a review of existing relevant literature on the subject.
Deming's view of performance appraisals may be said to be over rated. However, there exist a number of other business executives and management experts and authors who tend to be in congruence with his views. Falcone and Sachs (2007) write that performance appraisals have a common misconception in that their sole purpose in the workplace is to “inform employees how their performance has been rated. ” Berger (2008) concurs with this misconception and says that a contemporary performance appraisal operate on the basis of absolute comparison by assessing how employees perform as compared to set goals and objectives.
According to the same authors, (Falcone & Sachs, 2007), a performance appraisal is a work session between employer or senior staff with the junior staff aimed at making plans for the future. Berger (2008) also says that if managers could only impart performance appraisals on their employees in the right way then, the procedure would be sufficient enough to deliver feedback, manage organizational talent and play a significant role in making good compensation and rewards decisions.
However, traditional managers, more so where there is a vertical organizational chart and making of decisions and flow of authority is from top downwards, are not ready to lose their “respect” by interacting with their subjects. Berger (2008) says that organizations with an organic structure have higher success rates in implementing performance appraisals.
She (Berger, 2008) says that the backbone of performance appraisals is excellent communication between the senior management and other employees of the organization. She dismisses the traditional way of appraisal where managers “lecture” employees without hearing them out. Approaches to performance techniques This paper will limit the study to two main techniques as below