MGMT310 Principles and Theory of Management

Question

Answer

Introduction

Performance appraisal can be described as a formal method of evaluating quality of employee’s job performance. This method brings to light the individual performance of an employee. This is usually done by the employee’s immediate supervisor (Grote, 2002). In a research, done over 278 organisations (15 multinational corporations) of 15 different countries, it was evident that 90% of the firms implement a formal performance appraisal system (Cascio, 2006). In spite of being so useful and famous this method is hated by some the managers. Managers may rather go for a root canal than going for performance appraisal process.

Reasons responsible for hating performance appraisal

 Main reasons responsible for mangers hating the performance appraisal are as follows:

• Some managers do not have the proper training to conduct the performance appraisal. According to research conducted by American Management Association main reason for hatred with performance appraisal system is lack of proper training to managers (Krung, 1998).
• It is a lengthy and time consuming process. An individual report has to be maintained for each employee. Thus it requires a lot of effort from manager.
• Managers may or may not know the employee personally. This can be due to different shift timings or some other reasons. Therefore it becomes difficult for manager to evaluate employee performance.
• Another reason for mangers to dislike this system is that, it creates a negative work environment. It creates anxiety and stress in the employees as well as in managers.
• Employees who are not satisfied with their appraisal report become less willing to work. Thus it becomes a tough task for mangers to motivate them to work better.
• It can have negative effect on the manager and subordinate relations. 

Despite of so many reasons why managers hate this system an effective manager can carry out this process effectively and can bring positive results for the organisation. For this we need to know the basic qualities possessed by a good manager.

Traits of an effective manager

According to Tarafder, S.K (2004) first of the basic and the most essential characteristic required to be a good manager is being responsible. When a manager is willingly taking responsibilities he is promoting himself in the carrier ladder. The other characteristics are listed as follows:

• A manager should always have appropriate job knowledge.
• A manager should be easy to approach.
• A manager should have problem solving abilities.
• A manager should have excellent communication skills.
• A manager should possess motivational skills.
• A manager’s personality should be inspirational.
• A manager should always be clear while giving instructions
• A good manager should be fair to everyone.

These are just few characteristics that a manager should possess but there is no set profile for managers who may struggle with the communication process. Every manager should try to avoid some common mistakes to carry out the evaluation process successfully. Few elements should be taken into consideration for a successful employee evaluation process.

Key elements for successful employee evaluation process

Though, performance appraisal is a challenging task for every organisation. But few companies present a great example in implementing this system.

Deloitte India

This company focused on improving the future performance rather than accessing the past performance. It also bought ‘Reinventing Performance Management’ system into existence.

Axis Bank

It introduced ‘Enhancement Programme’ it provides another chance to employees to improve their rating.

Godrej

This company focused on not only achievement of goal but also how they are achieved. This organisation bought timely feedback into regular practice.

Accenture

This company did not followed traditional method of performance appraisal rather than it focused on creating rewarding opportunities for employees and helping them to achieve so

(Economic Times, 2017).

From so many successful examples key elements that can be figured out are timely feedback, proper training, association of proper rewards, proper documentation of performance reports, clarity in goals and objectives etc. Roberts(2003) emphasised the need for participation of employee in the appraisal process. He also stated that if employees are assured of the fairness in appraisal system they are more likely to accept the performance ratings.

Preparation required by the manger for proper employee evaluation process

Performance appraisal process can be categorised into 5 parts planning, monitoring, developing, rating and rewarding (US office of personnel management, 2017 ). Manager needs to prepare for all of these 5 segments. Nothing can be done without a proper planning thus manager needs to plan this process. It should begin with clearly stating goals and objectives to the employees. Next thing that is to be done by the manager is careful monitoring the employee and solving their problems. Developing involves working on weaker areas of employee. Give the employees a proper understanding of job and what they are expected to do .After that manager needs to develop tools or methods used to rate the employee. Manager should also associate suitable rewards with the appraisal process. Time to time documentation of performance report is also an essential element to prepare for performance appraisal.

Employee Evaluation Form:

A performance appraisal form should be simple and must contain basics of assessment areas. It should also contain rating scale like from poor to excellent (Smart sheet, 2017). It should cover all the relevant areas for grading employee performance. Also there is space for subjective questions. Only significant assessment areas should be included in the form. The form should be designed in such a way that it correlates to the organisation’s objectives. The sample form is attached in the appendix.

Conclusion

It can be concluded that, though the managers hate performance appraisal system for various reasons, still it is a very important process that cannot be avoided. The process can be made effective if managers are properly trained. There are companies who made this process really fruitful with some innovations in the traditional methods. Performance appraisal requires a proper planning by the manger for its successful implementation. The form designed for the appraisal purpose is also an important tool that plays a vital role in appraisal process. It should be designed with great care. Overall, a little and regular effort from manager and employee can reduce the hatred and frustration levels with the performance appraisal process.

References 

Cascio, W. F. (2006). Handbook of research in international human resources management: Global performance management systems. Edward Elgar Ltd : London.

Economic Times (2012, April 08). Appraisals: Companies across sectors on what they did to make performance appraisal a win-win process. Retrieved from http://economictimes.indiatimes.com/jobs/appraisals-companies-across-sectors-on-what-they-did-to-make-performance-appraisal-a-win-win-process/articleshow/58056096.cms

Tarafder S.K (2004). Essence of competent manager: Who are Managers. New Delhi: Atlantic Publishers.

Roberts, G. E. (2003). Employee performance appraisal system participation: A technique that works. Public Personnel Management, 32(1), 89-98.  

Krug, J. (1998). Improving the performance appraisal process. Journal of Management in Engineering, 14(5), 19-20.

Grote, R.C (2002). The performance appraisal question and answer book: A survival guide for managers. AMACOM: USA.

US office of personnel management, (2017). Performance management: background and context. Retrieved from https://www.opm.gov/policy-data-oversight/performance-management/measuring/employee_performance_handbook.pdf

Smart sheet, (2017). Simple Performance Review Template. Retrieved from https://www.smartsheet.com/free-employee-performance-review-templates