The survey was distributed to 1500 human resource management specialist randomly, from totally 614 companies of various industry background and sizes. “The surprisingly high response rate to this survey suggest that performance appraisal is a popular current employment issue” (page 82), despite numbers of critics to performance appraisal practice and adoption of TQM that focuses on teams performance (rather than individual, that assessed by performance appraisal).
From the compared data, researchers then try to figure the changing pattern of PA adoption and practices in Australian companies. They found that for many organizations, PA is still seen important and crucial for companies’ success. Yet they found the less of importance and practice of 360 degrees performance appraisal. Most of appraiser and appraisal scheme only concern about current and past performance, while less emphasized on career development and training and development for future jobs. “Such findings challenge government and industry imperatives toward ‘more long term and ore education and development approaches proposed by the Karpin committee (Karpin, 1994)” (page 90).
Despite the growing application of Total Quality Management that emphasize in team effort, individual based performance appraisal is still seen important for companies. Theory Related Grote (2002) define performance appraisal as a formal management system that provides for the evaluation of the quality of an individual’s performance in an organization. Performance appraisal is seen as a formal and documented effort, which differentiated it from other type of performance measurement.
The Essay on The Traditional Performance Appraisal
Performance Appraisal is intended to evaluate the employees’ performances and to measure their respective work efficiency and effectiveness (Martinez, 2001). Generally, the performance of an employee is determined based on the extent he or she contributes in the achievement of the organizational goals. In this connection, every organization utilizes a systematic approach for the performance ...
If it is run effectively, performance appraisal can create sound policy about how to reward good employee, “encourage productive employees to strive more, and help wayward employees get back on track” (DelPo, 2007).
Bach (2003) listed 6 reasons why having a formal appraisal system is important for company : 1. To validate selection methods. To what extent is the organization choosing the right kind of people for jobs? 2. To identify Candidates for promotion. 3. To validate appraisal methods.
To what extent is the organization using appropriate yardsticks to evaluate performance? 4. To provide evaluative feedback on individual performance. 5. To determine training needs. 6. To allocate rewards. Considering individual contributions, what rewards should be given to them? Performance appraisal was and integrated part of company’s Performance Management, and seen important for company’s success in business, as more and more business institution adopt it for their human resources management strategy .
However, the critics from employee and related subject of performance appraisal, against the implementation of the system also emerge. Time consuming, high cost, and focused on past result rather than future development, are among the arguments, also additional findings show that performance appraisal can actually lead to poorer rather than better performance, tend to create prompt argument between appraiser and employee (Rothwell and Kazanas, 2003, cited from Martin and Bartol, 1998; Kikoski, 1999).
Gloomy predictions about the end of performance appraisal even have been prophesied by some writer. As Bach (2003) noted, some have predict that appraisal would ‘fall apart at the seams’ (cited from Margerison, 1976), due to employee ambivalence and union opposition, and added that “the days of standardized appraisals were number” (Bach, 2003, cited from Fletcher, 1993).
The Research paper on Performance Appraisal 11
... Schaubroeck, 1988; Thornton, 1980). Furthermore, in many performance management systems such as Management-by-objectives, the employees' self-appraisals are submitted to supervisors or managers prior ... a crucial factor to conducting effective performance appraisals. Companies must train their managers on how to conduct performance appraisals and managers must know how to ...
However, despite the fact, adoption of performance appraisal is growing in number, as reported in many recent researches (Bach, 2003).
Adoption of TQM, which emphasize more in team effort (Wikipedia, accessed 2010), didn’t seems to lessen the spreading and growing importance of PA. Some have tried to reconcile the difference by creating a PA system that actually works so well in TQM (Marr and Kussy, 1993).
Other Journal Related As written above, much of criticism has been addressed to PA, yet the number of companies utilize this system is still growing.
I think this is understandable because some findings correlate the implementation of effective and well created performance management system and performance appraisal, with employee’s or organizational success. Waal (2008) in his research titled “The effects of performance management on the operational sales results of a bank”, showed “that the PM related key events had a significant and lasting positive impact on the quantitative result of the division” (Waal, 2008).
Other study conducted by Kourkit and Waal (2008), strengthen the previous findings.
In this research, writers try to find out the correlation between “advantageous” and “disadvantageous” of Performance management, with companies’ success. “The research showed that in general the advantages were experienced to a much greater degree than the disadvantages, and that specific reasons for use achieved specific advantages. With the research results, management can convince organizational members that SPM (strategic performance management), indeed beneficial for the organization (Kourkit and Waal, 2008. Italic added).
Findings and Conclusion
From journal study, and study from related theory and journals, my conclusions are as follow: * Performance Appraisal is an integrated part of Strategic Performance Management, which is a part of Human Resources Strategic Planning. * Effective, efficient, and well crafted performance appraisal system, which is suitable for company’s strategic system, if implemented, can be a powerful source of strategic advantages, and brings success to employee as an individual and company as whole. * Growing in number of implementation of performance appraisal shows its growing importance in companies’ operation. Despite the criticism, recent studies indicate that PA related with company’s success.
The Essay on Telephone Company Management Problems
Industry LeadersTotal Industry Earnings for 2004: 6.8 Billion DollarsMCIChief Operating Officer: Michael D. Cappellas2003 Sales (mil.)$27,315.01-Year Sales Growth(15.2%)2003 Net Income (mil.)$22,211.02003 Employees56,6001-Year Employee Growth(9.7%)Total Market Share 18.6%AT&TChief Operating Officer: David W. DormanVice President: Thomas W. Thorton2004 Sales (mil.)$30,537.01-Year Sales ...
