Performance Appraisal System Essay

Performance Appraisal System Antronette S. Hancock Axia College of University of Phoenix A performance appraisal system is a very important part of any successful organization. Both employees and organizational management and leaders benefit from a well-structured performance appraisal system. These systems offer feedback and rewards to employees who perform well, while at the same time holding employees accountable for their performance. The following report will describe the purpose, benefits, and elements of a good performance appraisal system, and outline a unique performace appraisal system for a human service organization. The purpose of a performance appraisal system is to provide an evaluation and feedback on an employee’s performance. Most organizations perform appraisals yearly and may call the appraisal by other terms-such as a review. Even if appraisals are performed annually, management should have weekly consultations or meetings with staff to ensure each employee is kept up-to-date with policies and each employee knows what is expected of him or her. A manager should not wait until the end of a year to let an employee know that there has been a performance problem for the last eight months. Problems should be addressed as they arise to prevent any surprises during the appraisal process. The evaluation portion of an appraisal system is normally performed by management. During this portion, management evaluates an employee’s performance to determine if there are any areas that need improvement. Ideally, all employees should be meeting or exceeding organizational standards. If an employee is not meeting standards, or has not met standards at some point within the previous year, his or her appraisal may have suggestions for improvement or there may be other consequences as a result of poor performace. The feedback portion of an appraisal system normally takes place between management and the employee who is being appraised. According to Caruth and Humphreys, appraisals should be formalized according to organizational procedure (2008). Feedback should be conducted in a private setting to ensure that the information being passed on is confidential. The manager should thoroughly explain the employee’s appraisal and encourage the employee to ask questions. The manager should also be attentive to what the employee says so the the employee does not feel like his or her comments or concerns are not important. From an employee viewpoint, the purpose of a performace appraisal is very different than that of the organization. According to Cash, the employee wants to know four things: what do you want me to do, how well have I done it, how can I improve my performance, and reward me for doing well (1993). These are the questions and expectations an employees need to know in order to perform his or her job well. Managers should make sure employees are aware of expectations each and every day while working. From the organizational viewpoint, one of the main purposes of an employee appraisal system is accountability. Employees need to be held accountable for their performance at all times. A good appraisal system outlines each employee’s responsibilities and performance rates to show accountability. This is especially important in organizations that have areas with overlapping responsibilities. Each employee needs to know specifically what he or she is held accountable for. There are many benefits of a good performance appraisal system. One of the benefits is that the appraisal process allows managers to have one-on-one time with employees that they may not get to have on a daily basis. Another benefit is that any existing problems can be addressed and, hopefully, solutions can be made so that the problem can be corrected. Appraisals also encourage employees to perform better in the future so that the next appraisal will be positive. Consider the following unique appraisal system for a human service organization. Each employee will be evaluated yearly. The evaluation will be based on three areas: work performance, attendance, and innovation. Work performace will acquire the biggest portion of the appraisal score because there are many factors involved. Work performance will be based on organizational standards, accuracy rates, timeliness standards, and customer satisfaction. Attendance scores will be based on the employee’s attendance history for the previous year. And Innovation scores will be given based on any ideas the employee has come up with to improve organizational processes or cut organizational costs. Once the scores are determined, a final appraisal score is given to the employee. Employees can compare these scores from year to year to see if his or her performance is acceptable for the organization. Employee appraisal systems are very beneficial for both employees and the organization. Appraisals provide feedback to employees concerning their performance and also holds each employee accountable.