Human resources management is getting more important nowadays as it helps company to accomplish their target, and achieve sustainability and competitive advantage. According to many researchers, most of the successful companies in 21 century are the one who focused on the development of integrated human resource system. Human Resource Management focuses on personnel related areas such as job design, resource planning, performance management system, recruitment, selection, compensations and employee relations (Marquardt 2004, p.2).
Kumar’s 2005 study (cited Newstrom and Davis, 1993) show that a generation ago, appraisal systems tended to emphasize employee traits, efficiencies and capabilities. With the development of the employee/organization relations, modern appraisal philosophy emphasizes on the present performance and future goals. Modern philosophy also focuses on employee participation in mutually set goals with the supervisor. The underlying philosophy behind mutual setting of goals is that people will work harder for goals or objectives that they have participated in setting.
The evaluation of job performance have been called by many different names throughout the years, such as a tool of management, a control process, a critical element in human resources. The first recorded appraisal system in industry was Robert Owen’s use of character books and blocks in New Lanark mills in Scotland around 1800. The character book recorded each worker’s daily report. The character blocks have different colour on each side to represent the performance of the worker ranging from bad to good. Besides, the character blocks were displayed in each employee’s workplace (Cardy & Dobbins, 1994).
The social envir...
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...sides, different people which can give the wider prospective of the employee’s competencies (Shrestha, 2007). The process works through questionnaires, which are confidential; the individual receives a summary of aggregated results. Because feedback is anonymous providers feel safe to share their straight opinions. The feedback is also balanced because it is mirroring views of superiors, peers and subordinates.
The potential problem with 360 is that after getting feedback the person should work together with his/her line-manager towards identifying improvement measures and actions. However, the case study of HSL Company shows that very few employees are willing to share their feedback result with others. Perhaps the reason behind is that there is no requirement for the employees to share their feedback with the line-managers and design future actions. (Dechev,2010)
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