Review of literature on effectiveness of performance appraisal

Judgmental evaluations are the most commonly used with a large variety of evaluation methods. PA helps the subordinate answer two key questions: Therefore, improving PA for everyone should be among the highest priorities of contemporary organizations".

Review of literature on effectiveness of performance appraisal

Rationale Performance appraisals are one of the most important requirements for successful business and human resource policy Kressler, Rewarding and promoting effective performance in organizations, as well as identifying ineffective performers for developmental programs or other personnel actions, are essential to effective to human resource management Pulakos, Evaluating employee performance is a difficult task.

After a review of literature, a performance appraisal model will be described in detail. The model discussed is an example of a performance appraisal system that can be implemented in a large institution of higher education, within the Student Affairs division. The model can be applied to tope level, middle-level and lower level employees.

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Evaluation instruments forms are provided to assist you with implementation the appraisal system. Introduction Performance evaluations have been conducted since the times of Aristotle Landy,Zedeck, Cleveland, The earliest formal employee performance evaluation program is thought to have originated in the United States military establishment shortly after the birth of the republic Lopez, It also provides for the raw data for the evaluation of the effectiveness of such personnel- system components and processes as recruiting policies, training programs, selection rules, promotional strategies, and reward allocations Landy,Zedeck, Cleveland, In addition, it provides the foundation for behaviorally based employee counseling.

In the counseling setting, performance information provides the vehicle for increasing satisfaction, commitment, and motivation of the employee. Performance measurement allows the organization to tell the employee something about their rates of growth, their competencies, and their potentials.

There is little disagreement that if well done, performance measurements and feedback can play a valuable role in effecting the grand compromise between the needs of the individual and the needs of the organization Landy, Zedeck, Cleveland, Purpose Performance appraisals should focus on three objectives: Both the supervisor and employee should recognize that a strong relationship exists between training and performance evaluation Barr, Each employee should be allowed to participate in periodic sessions to review performance and clarify expectations.

Both the supervisor and the employee should recognize these sessions as constructive occasions for two-way communication. Sessions should be scheduled ahead of time in a comfortable setting and should include opportunities for self-assessment as well as supervisor feedback.

These sessions will be particularly important for new employees who will benefit from early identification of performance problems.

Review of literature on effectiveness of performance appraisal

Once these observations have been shared, the supervisor and employee should develop a mutual understanding about areas for improvement, problems that need to be corrected, and additional responsibilities that might be undertaken. When the goals are identified, a plan for their achievement should be developed.

The plan may call for resources or support from other staff members in order to meet desired outcomes. In some cases, the plan might involve additional training. The supervisor should keep in contact with the employee to assure the training experiences are producing desired impact Barr, A portion of the process should be devoted to an examination of potential opportunities to pursue advancement of acceptance of more complex responsibilities.

The employee development goals should be recognized as legitimate, and plans should be made to reach the goals through developmental experiences or education Barr, Encouraging development is not only a supervisor's professional responsibility, but it also motivates an employee to pursue additional commitments.

In addition, the pursuit of these objectives will also improve the prospect that current employees will be qualified as candidates when positions become available. This approach not only motivates current performance but also assists the recruitment of current employees as qualified candidates for future positions Barr, Reasons why need to be done Benefits of productive performance appraisals.

Randi, Toler, Sachs, Pitfalls to Avoid When conducting performance appraisals on any level, it is important to keep in mind the common pitfalls to avoid. These pitfalls may include but are not limited to: Too much attention to characteristics that have nothing to do with the job and are difficult to measure.

Effectiveness of Performance Appraisal Processes |

Over-emphasis on favorable or unfavorable performance of one or two tasks which could lead to an unbalanced evaluation of the overall contribution. Relying on impressions rather than facts. Failure to provide each employee with an opportunity for advance preparation Maddux, Legal Implications Any performance appraisal system used to make employment decisions about a member of a protected class i.

Based on age, race, religion, gender, or national origin must be a valid system an accurate measure of performance associated with job requirements. Uniform Guidelines on Employee Selection is the controlling federal law in the area of performance appraisals.

The Equal Employment Opportunity Commission EEOC requires that any measurement used to differentiate between employees must be valid and fairly administered.A performance appraisal (PA), also referred to as a performance review, performance evaluation, (career) development discussion, or employee appraisal is a method by which the job performance of an employee is documented and evaluated.

Review Of Literature On Effectiveness Of Performance Appraisal System. PERFORMANCE APPRAISAL: A CRITICAL REVIEW Abstract: Performance appraisal is used in many organizations in order to assess the performance of their employees.

Some literature on the subject of performance management focuses on and, is narrow to either performance measurement or performance appraisal with no reference to performance management.

While these are valid aspects, effective management of individual or team performance requires a combination of processes that ensure that what people do in.

Performance appraisal - Wikipedia

Effectiveness of Performance Appraisal Author The literature review chapter will introduce main themes in the areas of performance management and performance appraisals procedures.

The main focus will be on the effectiveness of performance appraisals system and the participants‟ influence on it. The methodology section will introduce the. Impact On Corporate Performance In India CHAPTER – 2 LITERATURE REVIEW 21 Financial Restructuring and Its Impact On Corporate Performance In India LITERATURE REVIEW Finance is the life blood of business.


A unit may fall sick because of a major lubricant i.e., finance. makes possible effective co-ordination & perfect adjustment between present and future practices (compensation, performance evaluation, and promotion practices) in the banking sector of Pakistan.

Survey of banking personnel was conducted through Review of Literature.

Performance Appraisal - Lit Review