The argument about “Do performance appraisals actually result in better performance?”

Performance Appraisals

Do Performance Appraisals Really Result in Better Performance

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Introduction

There are three fundamental questions every business organization must consider . The first is how are the employees doing ? The second is why The third is what should the employees be doing ? In this of advancement of technology and rapid obsolescence of knowledge , every business organization must continuously assess the performance of its most important asset and determine what needs to be done to improve their performance . The effective assessment and evaluation of employee performance is

one of the goals of performance appraisals

Early studies conducted by companies reveal that performance appraisals may serve as an effective motivating strategy to boost employee performance . This conclusion was reached after these companies noticed that employees with the same skills , abilities , educational background who are generally given the same compensation package perform differently at work . Some perform very well , while some were performing poorly . As a result , the emphasis for reward was gradually replaced by other motivational tools . One of them is performance appraisals

Some managers however find performance appraisals as one of their most difficult function (Linda Gravett

.1 ) They fail to realize that the managers have been doing this function for a long time even at the time they were still supervisors . As a human resource management function performance appraisal has started only in the 20th Century . However the essence of performance appraisals which is judging the work of employees has been practiced by employers and managers since time immemorial . According to Shannon Burger (2006 ) it is a basic human tendency to make judgments about those one is working with , as well as about oneself (Burger

.11 Recently , however , some practitioners in the field of Human Resource Management that and Human Resource Managers are questioning the effectiveness of the performance appraisal System as an effective motivational strategy . A research on this issue shows that about 80 percent of companies in the United States use annual performance reviews of some kind . Yet 85 percent of these firms are dissatisfied with employee appraisals (Larry Keller ,

. 1 ) Also , surveys conducted by Mercer and Wyatt consulting firms report that a majority of the firms are currently experiencing problems with their performance appraisal (Chalmer E . Labig Jr Tan Yew Chye ,

.1

On the other hand , some are in favor of the continuation of the performance appraisal systems in company arguing that the performance appraisals help motivate and change the behavior of employees . It helps in measuring the performance of every employee and his effectiveness on the job . It also is a good mechanism by which the employers may provide feedback to their employees on their performance

This research seeks to determine whether performance appraisals indeed can motivate the employees and help result to a change in their behavior and attitude toward their work . This research proceeds on the theory that performance appraisals are effective in motivating the employees and that any misconception on the nature of performance appraisals...