Before we answer the question of the day – what is the impact of performance appraisal on staff productivity? We need to look at performance appraisal on it is own. Of course, performance appraisal is increasingly gaining attention in governments, businesses and charitable organizations because of the rapidly changing work values and the need for competitiveness in the changing global economic system around the globe.
What is the Impact of Performance Appraisal on Staff Productivity?
What is performance Appraisal?
Firstly, performance appraisal is the systematic evaluation of the performance of employees and to understand the abilities of an employee for further growth and development.
It also refers to the regular review of an employee’s job performance and overall contribution to a company. It is also known as performance review or employee appraisal. Performance appraisal can influence organizational decisions to engage services providers if employees fail to carry out the required services as per key performance indicator. For instance, if the employed cleaners failed in terms of performance, their employment contract can be terminated while services of professional managed cleaning company can be engaged.
What is Staff Productivity?
In any work environment Staff Productivity means the amount of work that people employed by a particular organization can produce over a certain period.
The issue of staff productivity and the need to evaluate them have always been a matter of prime concern to management and even to the employee. This is done as the employee needs a feedback to his or her output in the organization for a particular period.
Importance of Performance Appraisal
Performance appraisal are useful to managers and organizations in the following ways:
- Feedback development: performance appraisal help the managers to frame training policies and programmes. It helps to analyze strengths and weaknesses if employee so that new job can be designed for efficient employee.
- Management decision making: performance appraisal is used administratively, it provide an objective basis for promotion, salary increment, transfers and termination for the weak performers.
- Employee Motivation: through evaluating the performance of employees, a person’s efficiency can be determined if there targets are achieved. This will motivate an employee for better job and helps him to improve his performance in the future.
- Compensation: performance appraisal helps in chalking out compensation packages for employees. Compensation packages which includes bonus, salary increment, allowances, and extra benefits are dependent on performance appraisal.
WHAT IS THE IMPACT OF PERFORMANCE APPRAISAL ON STAFF PRODUCTIVITY?
METHODS OF PERFORMANCE APPRAISAL
Trait and Behavior Appraisal
This method of performance appraisal is concerned with assessment of workers on personal characteristics that are relevant to job performance, such as education, skills, capabilities or personality. For example, customer service representative may be evaluated based on his or her ability to show empathy and or communication skills.
- Result Appraisal
With result appraisals, organization assess performance by the result or the actual output of particular work behaviors.
- Objective Appraisal
This is an appraisal that is based on facts and figures, and it is usually numerical terms. Objective appraisals set targets or standards. Key Index Performance (KPI) is a good example of objective appraisal.
- Subjective Appraisal
An appraisal is said to be subjective when it is based on appraiser’s perception of traits, behaviors, or result. Subjective appraisal are usually unreliable and misleading because they are based on the appraiser’s perception. In cases where the manager or appraiser does not like n employee the tendency is high due to human nature that he will be biased in appraising such an employee. And when this happens , the organization will be misled inti taking decisions that it would not otherwise have taken if the employee was objectively appraised.
- 360 Degree performance appraisal
Is a multi-dimensional performance appraisal method that evaluates an employee using feedback collected from the employee’s circle of influence namely managers, peers, customers, and direct reports. This method will not only eliminate bias in performance reviews but also offer a clear understanding of an employee’s competence. Customer satisfactory survey (CSAT) used to rate customer care agents at the end of client or customer’s enquires and calls is a good example of 360 degree performance appraisal.
- Management by objectives
Is the appraisal method where managers and employees together identify, plan, organize and communicate objectives to focus on during a specific appraisal period . The principle behind MBO is to make sure that everybody within the organization participate in goal setting, has a clear understanding of the aims, or objectives of that organization as well as the awareness of their own roles and responsibilities in achieving those aims
CRITICISM OF PERFORMANCE APPRAISAL
Performance appraisal on staff productivity have be criticized in the following ways:
- Distrust of the appraisal can lead to issues between subordinates and supervisors or team leads
- It can lead to employees engaging in an unethical practices in order to meet set objectives or targets.
- It may lead unfair evaluations in which employees are judged not by their accomplishments but by their likability.
- It can make managers to adopt unreasonable goals that can demoralize the employees.
In conclusion, feedback on performance always be provided to employees both as means of behaviour modification and for performance improvement .
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