Performance Management and AppraisalIntroduction Every organization has to manage and assess the performance of their employees. Howevre, there is a major confusion regarding the two processes i. e. performance management and appraisal. No organization can successfully manage their performance without first clarifying the difference between the processes. This paper will give a clear understanding of the above mentioned processes, while highlighting their characteristics. Analysis Performance appraisal is according to Fletcher (2001) “common phrase for a variety of activities which organizations use to evaluate employees and develop their ability, improve performance and select employees for rewards.
Research regarding this issue has always been something important for industrial and organizational psychologist as well as for Human resource management experts. Performance appraisal usually has a problem in over estimating the performance. Majority of organizations utilize a formal evaluation systems instead of appraisal systems to measure employee performance, however as for those organizations which use such a system believe that “Performance appraisal is a annual practice of passage in organizations which causes anxiety and hesitation in the most qualified and experienced managers ” (Roberts & Pregitzer 2007 ).
There are a lot of reasons for this anxiety, and those reasons make performance appraisal something of a tension for the management as well as the employees. Employees are rewarded for meeting or exceeding performance targets. The behavioural method is concerned with employee behaviour. The focus is on whether an employee is doing things in the right way, and not on the amount of output as such. The advantage this approach has is that it becomes relatively to analyze and identify where a person is going wrong and to suggest steps to correct the same.
Finally, the person-centred approach is concerned with measures of personal characteristics such as knowledge, skills and ability. Where as, Performance management is an extremely old concept, it is utilized in every kind of organization. At times it may also be known as performance-based management. It seems a to be part of a fast moving trend by which competition is created amongst workers in the international job market. It is completely based on the performance question of how to improve the process, “can it be done faster, better, or cheaper (Hall 1984), ” by utilizing important performance goal and measures.
It has been said that "what gets measured gets done. " Measures of performance at the individual level might affect performance at the organizational level in three ways, each with a corresponding public management strategy: 1) selection, 2) remediation, and 3) incentives (Tichy & DeVanna 1984). These three methods are not mutually exclusive. A very famous view is that an employee’s performance is vulnerable to change. This notion is based on the fact that sometimes some employee’s performance is naturally better than others.
Is such a situation, performance measurement can be utilized to select top notch employees who are then kept or even promoted. Therefore, how to pick the best applicant would be an important issue. Another view assumes that employee want to do their work right and employer want the work to be done right. Thus human resource development will find new and innovative ways to improve performance. . Regarding this view, performance measurement serves two purposes: 1) it can help identify both best practices and effective executives who implement them; and 2) performance measurement may also be utilized to identify bad and unethical work practices as well as a poor performers, who can get "remediation, " like better training and proper guidance from their managers (Harris & Schaubroeck 1988).