Performance appraisal depicts an evaluation, which is
performed periodically to access the job performance of an employee (Robertson
2013, p. 2). As such, it can be equated to a report card for the assessment of
an employee. The formal process entails gathering information on the
performance of a person in an organization, which is used for several other
activities that include decision making such as re-assignment, pay, training,
and promotion among others.
The human resource department uses performance appraisals
as means for assessing the employee knowledge, skills, ability, and the entire
job performance. Thus, the appraisals help in the elimination of behavior
related to productivity issues and ensuring that there is motivation of
employees to have a better contribution in the workforce (Giangreco, Carugati,
Pilati & Sebastiano 2010, p. 155). There are different strategies, which
could be adopted by organizations for implementation depending on basic
preferences, but these have their independent limitations and advantages to the
Performance appraisals are vital since they provide an
effective documentation of the performance of an employee for a given period.
Thus, they help in getting insights into the competency and capability level of
a worker in executing the assigned duties. The report also assists in the
identification of the areas of need for training and development of a worker (Giangreco,
Carugati, Pilati & Sebastiano 2010, p. 156). Such occurs since there is
time that is available for the workers to interact with their bosses in the
The process of performance appraisal helps in creating
rapport between the manager and the employee. The situation occurs since these
two groups of people get a chance to interact and talk with one another
regarding the performance of a worker (Robertson 2013, p. 3). Consequently, the
manager gets the opportunity to offer the employee feedback related to the
performance, as well as discussion of the goals that needs to be accomplished
over time. Furthermore, the employee use these occasions as means of discussing
issues related to the work in the organizations and getting clarifications on
expectations from their job roles.
The workers have the opportunity to use the structure as
the platform for the development of the goals, which they have to achieve in a
given period (Mulvaney 2017, p. 86). Therefore, they allocate adequate
resources towards achieving these goals at all times while in the
organizations. The performance appraisal systems also act as motivating means
for employees who are supported by an effective compensation system and merit
increase in their work environment.
The performance appraisals create a chance for
documenting the history of the performance of the employee. Thus, organizations
record performances of all individuals and the documentations should always be
put in the file of the employee. The aim is to ensure that an historical record
of the development and performance of the employee is kept. The
under-performers are also identified through the conduct of the performance
appraisals (Mulvaney 2017, p. 87). The outcome is that those who cannot meet
the performance requirements are eliminated from the organization. Hence, the
system for the performance appraisal should be highly effective to ensure that
there is a chance to identify individuals who need to be eliminated in the
organization. These include the creation of a smooth transition of the
relationship, which should exist in the organization.
Performance appraisals need to be a good celebration of
the deeds of the employee. Therefore, they act as sources of encouragement and
motivation for the staff members. Hence, there should be no surprises when it
becomes impossible to address the issues as they emerge and conducting the
annual reviews (Stathakopoulos 1997, p. 135). The appraisals also reward the
staff members for the good jobs, which they have done while working in the
organization. These systems also help in correcting the undesired behavior,
which could be evident from the conduct of duties of the employee in the
Employee growth is enhanced through the conduct of the
performance appraisal. Workers who are motivated value development, plan, and
structure for growth. Hence, an effective performance appraisal system creates
an opportunity for the employee to have a chance of reaching their full
potential while working in the organization. Consequently, a positive
experience is created between the manager and the employee (Stathakopoulos
1997, p. 136). Good managers are always proud when they see that employees are
developing professionally and have a continuous growth in their work environment.
Organizations have a good global look on the existing performance management
system where their goals are tied to the performance management processes and
The system of performance evaluation helps in
strengthening the self-development of the employees. Hence, the workers become
more responsible in their work environment. The outcome of this is that the
individual level performance of an employee improves significantly (Simmons
& Eades 2004, p. 153). The staffs that are honest contribute to enhancing
organizational culture and ensure that the firm operates on the principles of
honesty and trust with its customers. Moreover, it becomes easy to identify the
opportunities of the employees such as the ability to process specific skills
at a fast rate as compared to others. Therefore, the supervisor is able to
assign the employee the job roles and responsibilities, which match the skill
that is processed at a fast rate (Mulvaney, McKinney & Grodsky 2008, p.
126). In addition, managers have a chance to recognize the achievement of the
employee in execution of their work and duties. Consequently, workers develop
the morale to perform their job roles and responsibilities at a high level of
effectiveness, which results in the achievement of the organizational goals and
Performance appraisals have the negative element of
creating a negative experience. The situation develops when they are not
executed in the right manner in the organization. Consequently, employees
develop a negative perception on these structures, which limits their ability
to achieve the intended purpose (Jirjahn & Poutsma 2013, p. 801). There is
also the case of having the halo effect where the supervisors engage in the
appraising of a person based on qualities that are considered to be positive
only. Therefore, the traits that are negative are not taken into consideration
during the appraisal method. Hence, such an appraisal does not contribute to
the depiction of the true picture and nature of the employee. Consequently,
there are employees who could be promoted in the organization when in the real
sense they do not deserve such promotions as compared to others in the same
organization. On the same note, there is the horn effect where there is the consideration
of the employee negative qualities as compared to positive quality.
The appraisal process of the organization has the chance
of discouraging the staff members. Thus, the process should be the other that
offers positive reinforcement, encouragement, and celebration of the
accomplishments in a given year (Jirjahn & Poutsma 2013, p. 802). The
document provided by the managers should not contain issues that need
corrections, but also things that are positive for the entire time of the
employee. Moreover, the performance appraisals have the weakness of introducing
an element of inconsistent messaging. When the managers fails to keep clear
records and notes of the behavior of the employee, it becomes complex for such
individuals to send consistent message to the workers (Siaguru 2011, p. 116).
Thus, it is paramount for the managers to ensure that they have a clear record
of the activities and issues related to the performance of the employees so
that when it comes the time of appraisals, they can easily refresh their minds
and review employee appraisal in the shortest time period.
The process of conducting performance appraisals results
in the waste of the resources from the organization and it is time consuming.
Thus, managers have to allocate their resources in executing the intended
organization objectives, which does not result in attaining the desired results
(Robertson 2013, p. 8). Further, the time that would be used for production
process is utilized in conducting the performance appraisals. Hence, these
actions makes the organization be prone to the waste of valuable time, which
could be utilized in executing other functions and operations for better
performance and revenue growth (Mulvaney, McKinney & Grodsky 2008, p. 127).
The supervisors often procrastinate the preparation of the performance
appraisal documents since they tend to take a lot of time for the departmental
The employees often feel cheated by these performance
appraisals. They develop feelings that the managers often rate them in a biased
manner. Such is based on the aspect of having the employers tying the bonuses
and raises of the employees to the performance ratings (Simmons & Eades
2004, p. 154). The waiting game results in the loss of money in spite of the
retroactive salary boost. Hence, the appraisals could lead to creating a
de-motivating factor for the effective execution of the functionality of the
employees in the organization.
Performance appraisals are conducted by human beings.
Thus, they are vulnerable to rater biases and errors (Sudarsan 2009, p. 54).
These issues lead to the reduction of the credibility and reliability level of
these systems as a means of assessing the performance level of an organization.
Furthermore, they create a stressful environment for all the involved persons
since these individuals have to sacrifice their resources and time so that they
can participate in the entire process of performance appraisal.
There are also cases of avoidance to engage in the
performance appraisal process. Therefore, the gathered information from this
procedure is characterized of an element of inconsistencies (Siaguru 2011, p.
117). A lot of paper work is also used, which creates an element of bureaucracy
on how the appraisal process is run in the organization. In addition, the
process could be termed as a disillusionment since there instances where there
is no follow-up from the involved parties.
Central tendency also develops in the organization during
the appraisal process of the employee. Thus, the superior obtains an
appropriate appraisal by offering the central values. The talented employees
are denied the opportunity of obtaining promotions while those that do not
deserve promotion could easily be promoted (Sudarsan 2009, p. 55). Moreover,
there are some bosses that are lenient in employees grading while others are
very strict. Individuals that deserve promotions tend to lose the chance of
because of the managers that are strict while others get the opportunity
because of the lenient supervisors.
Performance appraisals results in creation of an
interaction section between the bosses and their employees. Therefore, there
are managers who fear that if they give negative appraisals they could indeed
end up spoiling their relationships, which they have established with the
subordinates (Brown, & Heywood, 2005, p. 660). Hence, when the employee is
appraised, the situation could results in giving higher grades than expected.
The injustice results in destruction of good relationship, which could be
established with employees that deserve in the organization. The use of
different techniques in the appraisal process has the impact of destroying the
good will that exists between the seniors and the juniors in the organization.
Further, the variety on the techniques that are adopted complicates the process
of comparing employees successfully.
Culture significantly influences the appraisal system
that is adopted in the organization (Brown, & Heywood, 2005, p. 659). As
such, the approach that the managers adopt to appraise the employees should be
in line with the established cultural values of the firm. The system that is
based on the openness and participation of employees acts as a major starter of
the culture of the organization, which is non-participative and authoritarian
with regard to the policies of the employees. The failure of the organization
occurs because of the differences in culture, which should be looked at
In conclusion, performance appraisals are effective when
the organization conducting them has a purpose and goal. Hence, the obtained
feedback helps in strategic planning and aligning the business goals of the
organization. However, for the cases where the firm conducts the appraisal
system just for the sake, the situation results in the waste of time.