AN UNDERSTANDING TOWARDS BENEFITS AND CONCERNS ASSOCIATED WITH PERFORMANCE APPRAISALS- A STUDY HIGHLIGHTING THE ESSENTIALS OF GOOD APPRAISAL SYSTEM

Abstract

INTRODUCTION:Performance appraisal process is a formal structured system for assessing the performance of employees. It assists in comparing the employee performance to the established standards and agreed - upon goals (Fred.S & John.S, 2007, p.390). At organizations, the performance appraisal process is initiated not only for administrative decisions making but also with an aim to improve the performance of employees. The appraisals are usually linked to compensation benefits, and promotion in organizational hierarchy. Subsequently, appraisals contribute to the increased motivation among employees to perform efficiently. As compensation benefits and promotions are linked to app raisals, employees tend to understand the organizational objectives. Hence an effective appraisal would always assist organizations in achieving the organizational goals. Performance appraisals provide feedback on past performance, evaluates employees' potential and support development opportunities, it is applicable for managers as well to motivate employees to achieve personal goals that are compatible with organization's goals (Diane A, 2007, p.4). The effective performance appraisals usually allow easier communication of organizational goals. Performance appraisals are also often the source of increased self-esteem among the employees; because an effective appraisal would comprise of a promotion, and/or rewards and awards to the employees.Nevertheless, an appraisal would also create a negative experience when the managers judge the performance of employees in a biased manner. The bias may occur either deliberately or inadvertently, whatever may be the reasons or causes it creates a negative experience for the affected employees. The negative experience would be the cause of grievances; and this would be the cause for vicious environment at organizations. The organization can achieve its success; provided the appraisals are integrated with the organization's goals and strategies i.e. a proper alignment of individual goals with organizational goals would create an effective appraisal system. The study focuses on the purposes of using appraisals in an organization; it also emphasizes the benefits and concerns associated with appraisals; further the study also suggests the essentials requirements needed for a good appraisal system.RESEARCH OBJECTIVES:The purpose of this paper is to focus on the purposes of using appraisals in an organization. The objectives of this study are also to emphasize both the benefits and concerns associated with the appraisals. The main purpose of this paper is to present comprehensively the essentials requirements of a good appraisal system.RESEARCH DESIGN & METHODOLOGY:The paper is focused to provide insights to the employers, academicians and other interested parties who wish to know the true purposes of appraisals. The study presents the benefits associated with a well-planned appraisal process. Further, the study also highlights the various concerns associated with appraisals. The concerns explained in the study which are presented in a comprehensive manner are Objective vs. Subjective measurements, negative experience of employees, fear and distrust of employees, lack of time and commitment devoted by the management, and various biases connected with performance rating. The efforts were made in the study to provide the readers the essentials of a good performance appraisal system. Data for this study were drawn through a review of secondary sources, consisting primarily of e-books on human resource management, authored by reputed academicians and consultants, several websites and blogs related to the study sites. The various essential requirements of good appraisal system are comprehensively presented in the study.BROAD, COMMON AND GENERIC PERSPECTIVE OF THE STUDY:The study presents the purposes of performance appraisal in organizations; and highlights the benefits associated with a well-planned appraisal process and the various concerns associated with appraisals. …