Mgt 431 - Performance Appraisal Survey Analysis

Performance Appraisal Survey Analysis

MGT 431

University of Phoenix

Performance Appraisal Survey Analysis

Employee performance is usually best evaluated by means of a standard form followed by a superior-subordinate discussion. Through feedback provided during this discussion, the purposes of the performance appraisal are served. How effectively they are served depends on how the appraisal form is designed and how the discussions are conducted.

Performance appraisals have become a fact of organizational life. Recent research estimates that over 90% of all large organizations in the U.S. employ some form of systematic employee appraisal and review (Locher, Teal 1988). This widespread use can be attributed to human resource specialists, academics and consultants who proclaim that performance appraisal is a critically needed tool for effective human resource management. This is based on the belief that an effectively designed, implemented and administered performance appraisal system can provide the organization, the manager, and the employee a multitude of benefits. The literature on performance appraisals generally suggests that the appraisal process can 1) increase employee motivation and productivity, 2) provide a solid basis for wage and salary administration, 3) facilitate discussions concerning employee growth and development, 4) provide data for human resource decisions and 5) provide managers with a useful communication tool for employee goal setting and performance planning (Cascio, 1987).

The merits of the formal appraisal process are numerous and attractive to any organization considering their use. In practice, however, the problems associated with the design and implementation of formal performance appraisal systems are well documented and continue to frustrate both practitioners and academics. Organizations continually struggle to find an "ideal system" that will be accepted by managers and subordinates alike and also fulfill the needs of human resource departments. Some have even gone so far as to suggest that only a small percentage of appraisals are actually effective and accomplish the goals for which they were intended.

Formal appraisals are not always as effective as we might be led to believe. At the same time, appraisals do serve a number of useful purposes for the organization, manager and subordinate, many of which fall into the category of scheduled communications. If an organization is serious about improving the effectiveness of its appraisal system, the following guidelines are recommended:

• Assess the effectiveness of your current appraisal system. What are the functions that you hope your appraisal system serves? Identify them and construct a questionnaire to assess the degree to which organization members perceive the appraisal process to be effective. You are then in a position to develop a strategy to address your shortcomings if any are found to exist.

• Arrange appraisal skills training for your managers. For any appraisal system to be effective, training must focus on helping managers develop specific skills and confidence in their ability to effectively evaluate others. These skills should include goal setting, communicating performance standards, observing subordinate performance, coaching, giving feedback, completing the rating form, and conducting the appraisal review. An appraisal without training is a sure route to ineffectiveness, frustration, and dissatisfaction.

• Make sure your employees understand the appraisal system. Everyone in the organization needs to understand why appraisals are being conducted and how the system operates. The more