Performance Appraisal System For Employee Performance

Employee are evaluated by the company they work for on the performance of their job in relation to the effectiveness and efficiency of achieving the organizational goals and objectives. Having an effective performance appraisal system can increase employee performance. Youssef (2015) noted, “Consequently, managers dislike performance measurement due to the confrontational and judgment aspects of assessing their employee’s performance” (p. 144). This paper will address the strategic advantages of a performance appraisal, the potential bias within appraisal systems as well as how performance appraisals can contribute to the achievement of organizational strategic objectives.

An effective performance appraisal system is important to organizational

147). Although the main objective of a performance appraisal is to evaluate employee’s work performance, performance appraisals are also important for organizations because they reflect the effectiveness and efficiency of achieving organizational goals and objectives. Youssef (2015) stated “Organizations use performance appraisals for many purposes including, managing employees’ salaries, wages, and pay adjustments and providing performance feedback for employees and communicating points of strength and weaknesses. Performance appraisals are also used by management to determine job placement decisions such as promotions, demotions, and transfers and to justify employee disciplinary actions such as termination or dismissal” (pp. 149-150). The performance appraisal effectively measures employee’s skills and accomplishments as well as provides constructive feedback to enhance performance and to help promote employee professional growth. Performance appraisals should not, however, be considered the manager’s only communicating tool. Open lines of communication throughout the year develop effective working relations between managers and employees thus making the annual appraisal easier and more effective for

13). Youssef (2015) identified several common bias such as, “Stereotyping, halo effect, availability, self-fulfilling prophecies, and fundamental attribution error” (p. 161). Each of these bias have negative effects and managers should make every attempt to keep evaluations fair, valid and reliable. There are also intentional bias that managers use such as manipulating employees rating making them stringent or lenient, and deliberately under evaluating employ¬ees to put pressure on them to work harder, teach them a lesson, or create evidence justifying subse¬quently laying them off (Youssef, 2015, sec 6.6, p. 162). The overwhelming consensus among researchers suggests that the less the errors and bias in performance appraisal, the better employee performance and satisfaction and efficiency of the evaluation system (Javidmehr & Ebrahimpour,