Human resource management is recognised by organisations as being a component

of strategic management. This is where human resource management can

contribute to the organisation’s effectiveness. North (2010) states that performance

appraisal in its broader sense is an ancient art. Whereas, Redmond and Wilkinson

(2001) confirm that performance appraisals have changed numerous times over the

last decade.
The author will critically examine the challenges faced within the performance

appraisal process which occur in a working environment and will facilitate a greater

understanding of the performance management systems which are accessible to

organisations. Managementstudyguide.com. (2020) states, ‘Performance Appraisal’

“is the systematic evaluation of the performance of employees and to understand the

abilities of a person for further growth and development”.

Line managers are able to articulate training programmes and policies that enhances

the employee’s development through a structured process namely performance

appraisal. This will also help analyse the limitation’s and weaknesses of employees

in order to align future development programmes for employees.

Performance appraisal aids is an inspiration tool. According to the

Managementstudyguide.com (2020) as it enables line managers to evaluate the

employee’s performance so that an individual’s productivity can be determined and

their aims and objectives are achieved. This contributes to the self -motivation of an

individual to be more proficient in their better job and assists them to improve their

performance in the future.

Effective communication between employees and employers in the workplace is

very important. Through performance appraisal, communication can be required for

numerous purposes. By using performance appraisal, the employers can

understand and accept skills of subordinates. This enables line managers to create

work friendly relationships as well as developing mutual trust and assurance from the

employees. This will improve the morale the individuals and motivation of individuals

as well as developing a shared vision in the workplace.

.
The importance performance appraisal it helps with selection validation within the

selection procedure process for the line managers enabling those to acknowledge

the accuracy and how vital the selection procedure is within a workplace. This has

the outcome that the line managers can see the strengths and weaknesses of the

selection methods within the organisation.

In regards to promotion performance appraisal has the importance for line managers

to create the promotion programmes for effective employees that are progressing

through the workplace. Additionally, as a company this enable the line managers to

highlight the poor practice within company and how to run an effective dismissal

programme.

Archive.acas.org.uk, (2020) states ‘performance management’ “is the arrangements

that employers use to maintain, and improve the performance of their workforce so

that the organisation achieves its goals”. Whereas, performance appraisal according

to Investopedia (2020) states ‘performance appraisal ‘“is a regular review of an

employee's job performance and overall contribution to a company.

A table (appendix 1) demonstrates the characteristics of performance management

and performance appraisal aswell as showing a comparison between both topics

Winston et al (1997) stated that performance appraisal is on-going event. The

appraisal focuses on staff development and not salary adjustment which maybe

disciplinary action or a reward.

Within performance appraisal, there’s behaviour -based approaches that uses

specific factors related to their performance to assess and evaluate employees. The

performance of an individual or group can be assessed either quantitative or

qualitative methods.
The conventional rating scale uses a specific phrase to describe the level to which

certain behaviours are shown. This enables the assessor within the company to

judge on set out principles of how to carry out best practice within a business

environment.

Behaviourally anchored scale arises from the result of collaboration between the

managers and employees where a range of categories of working practice is

highlighted. This will have the purpose to measure an individual’s behaviour within

the company on a behaviour scale related to a specific behaviour criteria.

A weighted checklist is another form behaviour -based appraisal. Within this method,

individuals or groups are assessed on a scale identifying the extent to which the

statement precisely describes their ability and performance according to a list of

performance related statements.

The results focused approach this focuses on the outcome of the result to be

resulting from the appraisal. Creamer and Janosik (in press) stated there’s

advantages and limitations to results- based performance appraisals. Firstly, the

approach facilitates short- and long-term results in accomplishing the performance

and the organisation’s objectives and aims. This tends to create high levels of

commitment and unity amongst the employees within the organisation, aswell as

develops motivation levels for participation and are therefore invulnerable. On the

other hand, the limitation to that’s being to overly goal oriented which is mostly

inflexible.
Overall, the business should evaluate and analyse the trade-offs and limitations

before they approve the use of the results -based approach before it’s utilised within

the working environment. There are two different results focused approaches

management by objectives and accountabilities and Measures (Grote,1996).

Management by objectives was stated by Peter Drucker in his book (The Practice

Management 1954). Furthermore, it underlines the principle of goal setting and

feedback (Drucker,1973). The principle behind management by objectives is to make

sure all employees within the company acknowledges the shared vison of the

company, has a clear understanding of the aims or objectives of the organization,

awareness of their own roles and responsibilities in achieving those aims.

Organisational aims are reviewed and evaluated at the beginning of the year, then

employee’s objectives are set and their progression is monitored and their

performance would be evaluated. The employees that could achieve their set

objectives would be rewarded.

The qualitive and quantitative data gained by a performance management system is

used for the purposes such as salary administration, performance feedback and the

identification of employee’s strengths and weaknesses. However, performance

management systems can be broken down into different dimension which can serve

the following purposes: strategic. Administrative, developmental, organisational

maintenance and documentation.

.
The strategic Purpose of performance management systems is to support the

hierarchy within the management of the business to achieve the strategic business

objectives. Additionally, articulating the organisation’s goals and values with

individual goals, the performance management system enforced strengthens

behaviours consistent with the attainment of organisational goals. Likewise, even if

individual goals are not achieved, linking individual with the organisational goals

assists as a way of communication what are the most crucial business strategic

initiatives.

Administrative Purpose of performance management system is to provide valid and

accurate information for carrying out administrative decisions about employees

within the workplace. The decisions will include salary adjustments, promotions,

retention or dismissal acknowledgement of individual performance, identification of

poor performers, layoffs and merit increases. By the use of a reward system based

on information provided by the performance management system helps facilitate with

the administrative purpose.

The Information performance management systems oblige as an vital

communication device. Firstly, they communicate to employees about how they’re

doing, and provide them with detailed information on specific areas of improvement

that may essentially need improvement. in relation to the strategic purpose, the

business needs to provide information regarding the organisation’s and the line

managers expectations, and what aspects of work the supervisor believes are most

important.
Developmental Purpose feedback is an important component of a well-implemented

performance management system. This feedback can be used in a developmental

way. Line Managers can use feedback to develop employees and enhance

performance overall within organisation. This feedback allows for the identification

both of trade-offs and limitations and of the causes of performance deficiencies

(which could be due to individual, group or contextual factors). Of course, feedback

is useful only to the extent that corrective action is taken and building blocks are

implemented to remedy any deficiencies.

Feedback is useful only when employees are willing to receive it. Organisations

should strive to create a ‘feedback culture’ that reflects support for feedback,

including feedback that is non-threatening and is focused on behaviours, and

coaching to help interpret the feedback provided. Another aspect of the

developmental purpose is that employees receive information about themselves that

can help them support their career paths. Therefore, the developmental purpose

refers to both short-term and long-term development aspects.

Organisational Maintenance performance management systems are to provide

information to be used in an organisation’s planning. Workplace planning is a set of

systems that lets organisations to anticipate and answer to needs developing within

and outside of the organisation, to determine priorities, and to allocate human

resources where they can do the most good.

An important component of any workforce planning effort is the talent development

which is information on current resources: skills, abilities, promotional potential and

assignment histories of current employees. Performance management systems are

the primary means through which accurate talent development schemes can be

created. The additional maintenance purposes helped by performance management

systems include assessing continuous performance development needs, evaluating

performance achievements across the whole organisation level, and critically

analysing the effectiveness of HR interventions for their key performance indicators

whether employees perform at higher levels after participating in a continuous

personal development training. In addition, these programmes cannot be led

effectively in the absence of a good performance management system.

The Documentation Purpose performance management systems allow organisations

to collect qualitative and quantitative data that can be used for several

documentation purposes. First, qualitative data can be used to validate newly

proposed ideas or schemes. To measure qualitative data pilot runs are carried out to

correlate the qualitative data, then the test can be used with future applicants for

positions within the organisation. Overall, performance management systems allow

for the documentation of important personnel decisions within a business.

In this discussion, related to performance appraisal the in the 21st century is based

on author’s observation, ongoing research and studies undertaken by worldwide

researcher.

Outweighing the ultimate goal of negotiations. In the performance appraisal, it

happens when an answer is found to be beneficial for the individual and line

managers . Both parties would agree on their visons and expectations, and ideally

everyone will be satisfied with the outcome produced. In addition, the process of

reaching an agreement may stand-in learning and growth. This can lead to a broader

understanding and creating an effective relationship between those involved .

The most difficult necessity of an effective performance appraisal system is that it is

as free as possible from bias. Evaluators as a human being cannot deny the

involvement of bias in their decision making on a individual or groups performance.

This has the purpose so the evaluators can decrease the level of injustice as

possible.

Professionalism is a compulsory component for the reliability and validity of the

assessment. However, There are various types of biased individuals that creep

into appraisal system and the most reported are recency effect, halo effect, central

tendency and prejudice.

Conflict persistently occurs within a business environment in an organisation. This is

due to fact of how performance appraisal activities are carried out. The Conflict

occurs due to the fact of disagreement between both parties concerning the

operation of the performance appraisal process. This can be categorised into

numerous categories such as conflicting intra-individual goals, which is the desire for

genuine feedback versus desire for self-concept upholding feedback and recognition.
In contrast, there is an outbreak of conflict between individual workers with their

colleagues’ ambitions and aims , which means that a person’s desire for rewards

oppose with other individual’s long term goals.

360 degree feedback appraisal is a influential developmental method and in

comparison to different compared to the traditional manager-subordinate appraisals.

This model doesn’t get rid of the traditional one-to-one process which can be

castoff as a stand-alone developmental method. This process includes the individual

obtaining feedback from assessors anonymously or highly qualified named assessor

who is considered supportive and appropriate to provide quality assurance. The

qualitative feedback is typically provided on a checklist formed skills, abilities, and

behavioural criteria and scoring system. The individual should carry out self-

reflection’s regarding to the appraisal.

The Leadership style will impact the decision- making process in the appraisal

activity. The appraisal turns out to be more judgmental in nature when an autocratic

leader uses his or her position to oversee the process. On the other hand,

democratic leaders will initiate a developmental approach in the appraisal activity.

They always encourage involvement and good relationship practices in all the

appraisal process. Laissez-faire leaders however. will create a chaos environment

due to the fact that they are lack of commitment and skills. Exceedingly, the system

practice used is unproductively and unsuccessful.

Performance standard is decisive way of how to measure the results of employee’s

performance whether it is positive or unsuccessful. Occasionally, evaluator’s are

confused on the meaning of performance appraisal and the standard measurement

to measure performance within a working enviroment. The compulsory satisfactory

standard os need to be followed and well-articulated to the people. Standard is

important because of numerous reasons; to help the organisation achieve and reach

its goals; to motivate individual or a group to a higher level of personal work

behaviour; standards can reinforce behaviour; standard promotes the consistency of

employee’s performance of the organisation; and standard can be used to weight

and measure the impact of employee’s performance on their core business.

References

Archive.acas.org.uk. (2020). Performance management | Acas. [online] Available at:

https://archive.acas.org.uk/index.aspx?articleid=6608 [Accessed 8 Mar. 2020].

Investopedia. (2020). What is a Performance Appraisal. [online] Available at:

https://www.investopedia.com/what-is-a-performance-appraisal-4586834 [Accessed

8 Mar. 2020].

Managementstudyguide.com. (2020). Performance Appraisal - Meaning, Objectives

and Advantages. [online] Available at:

https://www.managementstudyguide.com/performance-appraisal.htm [Accessed 5

Mar. 2020].
Appendix 1- Comparison between performance appraisal and performance mana

gement

Managementstudyguide.com. (2020). Performance Appraisal and Performance

Management. [online] Available at:

https://www.managementstudyguide.com/performance-appraisal-and-performance-

management.htm [Accessed 8 Mar. 2020].gement