Importance of performance appraisal system pdf

DeNisi and Robert D. From employee perspective, performance appraisal give direction to employee that what exactly their way of required to do the job, also to motivate them to achieve their target and help them to improve their work performance.

According to Brown and Heywood, performance appraisal is formalized way of monitoring the work force and it is proposed to be a management tool to enhance the performance and productivity of an employee. Performance appraisal also improves the commitment of employee Brown and Benson. The Organization needs an appraisal system in order to put their managers in charge of relation to the performance of organization because when employees are given their job responsibilities and duties, then they are liable for these responsibilities.

Also Fletcher suggested that performance appraisal provide a platform for employees to look forward their tough goals and objectives, which leads them in successful completion of their job.

The positive feedback received from the mangers in appraisal interview will motivate employees in improving their performance likely. Martin and Jackson, appraisal is also a method of enhancing employee training and development as it provide information about the strength and weaknesses in performance, which create a debate how to improve the performance of employee. In the end it helps the employees to understand their overall contribution in achieving organization goals Martin and Jackson, Performance appraisal is also the known to be best for the training and consultation of individual employees by their superiors to improve job performance Wan D et al , Sels L Singh K, There are many ways by which organization will enhance the performance of their employees.

They use performance based compensation to give rewards on successful completion on specific organization goals and objectives. Another system is the bonus system which can also be used for motivating employees to work towards their achievement of the company Pfeffer Empirical studies done and found that there is a positive relationship between performance-related pay and overall company performance.

He indicates that performance appraisal is not as much acceptable to line managers as it is acceptable to human resource managers. However he admits that performance appraisal still play important role in organization. In spite of the criticism, Fletcher , Murphy and Cleveland argue that performance appraisal is important for improvement performance in organization and Simmons say again that nobody give reasonable alternative for appraising perfomance.

Fletcher , Murphy and Cleveland suggest that the process that is followed in design and implementation of such a system prohibits effectiveness rather than only performance appraisal is not responsible.

Fletcher further argues that organization spends proper money, time and willing to spend effort can be achieved successful performance appraisal system. He also acknowledges though that if organization has an effective performance appraisal system they still have to monitor continuously that system to make sure that it compels all needs of its stakeholders.

The employee training and development programs, target based appraisal, performance related pay for employees, feedback of the employees all these to improve their performance. In addition it is concluded that the performance appraisal play key role in any organization success. And Heywood, J. Performance appraisal systems determinants and change. So major concern or objective of the organisation to reach at desirable goals and objectives. Scope of research Scope refers to importance of the research and its subject matter to get important results in better way.

The major objective behind conducting research is significant for an organisation. Ways by which needs and wants can be identified in better way to give satisfaction level to consumers in better way. Research Aim To identify role of performance appraisal in order to enhance business performance effectively. A study on Hotel Hilton. Timescale: Timescale is one of important attribute for researcher to divide works and activities in systematic format as per specific time period in which it has been accomplished Bernardin and Wiatrowski, Rationale of research: Research is very important for an researcher to reach at desirable outcome in positive way by collecting knowledge and information in proper way.

It is very much important for an organization to find out major importance of that particular research and their respective results. By conducting research and development organization can be able to reach at hidden facts and figures that are helpful to reach at ultimate goal. It is a kind of scholarly paper in which includes current knowledge and information by collecting substantive findings by using theoretical framework on a particular subject matter Culbertson, Henning and Payne, What is performance appraisal?

In fact, performance appraisal is the basis for HRD. This gap should be bridge through human resources development techniques like training, and executive development, etc. Salary increase Performance appraisal plays a role in making decision about salary increase.

Normally salary increase of an employee depends upon on how he is performing his job. There is continuousEvolution of his performance either formally or informally. This may disclose how well an employee is performing and how much he should be compensated by way of salary increase.

Promotion Performance appraisal plays significant role where promotion is based on merit and seniority. Performance appraisal discloses how an employee is working in his present job and what his strong and weak points are. In the light of these, it can be decided whether he can be promoted to the next higher position. Training and Development Performance appraisal tries to identify the strengths and weakness of an employee on his present job. This information can be used for devising training and development programmes appropriate for overcoming weakness of employees.

Feedback Performance appraisal provides feedback to employees about their performance. A person works better when he knows how he is working. This works in two ways, firstly, the person gets feedback about his performance. Secondly, when the person gets feedback about his performance, he can relate his work to the organizational objectives.

Pressure on Employees Performance appraisal puts a sort of pressure on employees for better performance. If the employees are conscious that they are being appraised in respect of certain factors and their future largely depends on such appraisal.

Others a Identifying systemic factors that are barriers to, or facilitators of, effective performance. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns.

This can also have the effect of increasing the trust between the rater and the rate. In spite of this success, many organizations still struggling to make and implement effective performance appraisal system.

All the thought given to process ,many of flaws still willful wise and Buckley , Performance management is therefore anxious with improving the performance of teams and individuals to ensuring the optimal environment is available for their employees to enhance their performance Armstrong , According to Fletcher , performance appraisal provides a prospect for a manger and for subordinates to discuss the previous performance work on agreed objectives and standards to reach an agreement on how the appraisee can enhance job performance.