2. CFZAMBIA - Implementing Performance Appraisal- L. Barning - 2009/02/28 2
Most appraisal systems are resented by managers in an attempt to avoid the
embarrassment associated with deciding the fate of a subordinate and
criticizing the subordinate’s performance. To most managers scrapping it
would be a lesser evil. Resentment remains not only with the appraiser but
also the appraisee. Most subordinates dislike the notion of their fate being
decided by men who lack the expertise to do so and the use of procedures
some of which are far from satisfactory. To most managers the whole
system is a waste of time hence a less positive deameanour adopted
towards it. It is mostly regarded as a burden when supervisors and
employees are convinced that the outcome of the performance appraisal is
not worthwhile.
The respect we hold for the inherent value of the individual leaves us
distressed when we must take responsibility for judging the personal worth
of another person. Yet the conventional approach to performance appraisal
forces us not only to make such judgment and to see them acted upon but
also communicate them to those we have judged. Small wonder - we
resist!!
It is an undeniable fact that without the inputs provided by employees,
organizations will cease to exist in the first place. Effective management
of an organization’s human resource should therefore be seen as a primary
duty to achieve organizational survival and success in today’s competitive
business environment.
A behaviour known as performance
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Why do people behave as they do? A classic formulation by Kurt Lewin is
that behaviour is an interactive function of a person and his or her
environment or describes it as: B= f(P,E) . The environment, friends,
neighbours, the community and society are all a part of the environment
that influences a person’s behaviour. Within an organization, the
management and its structural considerations: designs, systems, policies,
procedures, rules and regulation play a major role in determining the
behaviour of employees. An employee behaviour that all organizations want
– whether the Secret Service, General Electric, and even the Mafia is a
behaviour known as performance. Yet, how do we ensure that employees
perform at their optimal level?
To ensure that individuals are acting in the best interest of an organization,
it is necessary to have a means for measuring employees’ contribution in
terms of productivity in the organization. This system of measurement of
performance is Performance Review or Appraisal.
Assessment of an individual’s performance goes beyond assessment of past
behaviour. It most significantly includes goal setting for future behaviours
and corrective action for unwanted behaviours. Indeed, most organizations
if not all, also make use of results of performance appraisal as a yardstick
for financial reward/incentive and so long as financial rewards are fulfilling
up to a certain level, it is evident that employees performance will be
skewed towards achievement of the organization’s goals.
Research shows that effective performance appraisal systems help to create
a motivated and committed work force. However, its effectiveness requires
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the commitment and support of top management to be able to translate
organizational goals and objectives into personalized employee goals.
It is therefore necessary to train supervisors, raters and employees alike to
appreciate the benefits of performance appraisal.
Management can make informed decisions faster if performance is planned,
reported and measured correctly. Done in an effective manner, it helps the
organization monitor potential problems as well as take good strategic
decisions. The adequacy of skill level of staff, impacts immensely on
productivity, profitability and survival. Therefore for organizations to
achieve corporate goals and remain in business, there is the need to assess
employees and determine strategies to manage them in an effective
manner.
The issue of employee performance in relation to achieving organizational
goals have occupied management’s attention for a long time. Differences in
levels of performance are attributed to differences in skill and ability in one
part and different levels of motivation in another. Inadequate skills and
ability are usually rectified through training and development, while
differences in motivation are corrected through the necessary or
appropriate motivational strategies and policies. (Eg. Financial rewards,
recognition, promotion etc.) Therefore for properly functioning
organizations, the uses of performance appraisal cannot be overemphasized.
However, the extent to which appraisals play a valuable role in the
organization depends on how it is conducted.
Performance Appraisal Systems involves
1. The form and method used to gather appraisal data.
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2. How to identify the appropriate criteria against which to establish
standards for evaluating the appraisal data
3. Establishing the validity and reliability of the methods used;
4. The characteristics of the rater and the appraisal feedback and the
interview process
5. The process involved in using the appraisal information for
development and evaluation
6. The evaluation of how well the performance appraisal is doing in
relation to the stated objectives.
To be effective, a standard must have certain characteristics and be
specific. To give meaning to this standard, more information is needed in
order to develop a standard that is measurable as possible. A good standard
must be challenging enough to stimulate interest. It should reflect a solid
contribution to ‘stretch’ the employee to achieve the supposedly set
targets. In spite of the benefits that organization can obtain from this
process, it has also been observed that many appraisal systems are not
relevant to organizational objectives, are subject to personal bias and often
influenced heavily by personality than by performance. There is a concern
therefore that most performance appraisals systems are inadequately
designed. As a result, appropriate data that can be used for making human
resource and administrative decisions are not often obtained.
Typically, most institutions will fill vacancies regardless of the quality and
quantity of existing workforce as evidenced in some organizations. There
are basic reasons why the system is not fully utilized optimally:
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1. Appraisers do not have a good understanding of the use of appraisal,
nor have they been given proper training.
2. Performance appraisals are not necessarily tied to reward and
promotion. Within the public sector, where salary increments are
across board, performance appraisals have little or no impact on
performance of employees. Also promotion is more related to the
number of years one has served and not how well one has performed.
3. Due to lack of education, employees may react to performance
evaluation with suspicion and hostility. Most subordinates perceive
evaluations as criticism of their performance especially when the
results are negative.
4. Feedback is an integral part of performance evaluation, however, in
some instances, employees receive little or no feedback. If given,
however, it is done in such a manner that brings about conflict.
Though organizations have a legitimate right to evaluate, many are
uncomfortable with the idea. This process to some is demoralizing,
dehumanizing, distressful and creates anxiety. The general idea to most is
that appraisals cannot serve the needs of performance evaluation and
development at the same time. However, there is a middle ground where
one can objectively assess an employee as well as encourage and develop
them in a balanced manner to achieve organizational goals.
A well-defined performance appraisal system will have other benefits in
addition to ensuring that employees are performing in a manner that
supports organizational plans and needs. The most benefit derived from
Performance Appraisal is first and foremost improved productivity because
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employees are taught or learn how their work behaviour directly affects
productivity of the organization.
Also, there is improved employee relations when employees see the
consistency in the evaluation process and can identify that performance
problems are dealt with early rather than allow the situation to deteriorate.
The organization will easily develop an inventory of skills and abilities of the
workforce that allows maximum utilization of the existing employees who
correct their own performance problems because they are made aware in a
positive manner. Performance appraisals will also disclose any weaknesses
in the recruitment and selection process. Indeed by following the yearly
data related to new jobholders, it is possible to assess whether the general
quality of the workforce is improving, staying steady or declining.
This therefore suggests that the appraisal system operating within an
organization must have optimal credibility based on clear ethical principles
where trust and openness are fundamental values of the system. These
principles therefore must apply:
1. Appraise on the basis of representative information
2. Appraise on the basis of sufficient information
3. Appraise on the basis of relevant information
4. Make an honest appraisal
5. Keep written and oral appraisals consistent..
