Of all activities counted in Human Resource Management (HRM), appraisal management is one of the most contentious and not accepted among those who are involved: managers don't like doing it and employees see no added point in it. But in recent years, performance appraisal has become a key tool advantaging through performance improvement and change. It comes through downsizing, decentralization, de-layering, flexibilities of the workforce, move to team-working, the culture change program, new managerial initiative and new payment systems, such as integrated reward system and merit- and performance-based pay, that have fueled the growth and development of performance appraisal. The performance management seems to largely contribute to achieve organizational objectives and stimulated considerable experimentation and innovation in its practice.
Today, new form of appraisal emerge, such as competency-based appraisal systems, staff appraisal of managers, team-based appraisal, customer appraisal, and finally the famous 360° appraisal system.
Based on Redman et al. and Bratton et al. approaches, I will try to answer to the question asked by giving many theoretical elements composed as follow; in the first part, I'll give a brief explanation about the history and current practice of performance appraisal such as terminology, development, practice and use. Then, I will move towards the innovation in the practice of performance management, such as the systems, tools and rating methods.
Finally, I will critically conclude by exposing the issues that this kind of management brings. Then I will be able to present a critical evaluation of performance management adapted to a large retailer situation.
[...] Who do we need to train is the appropriate question that must be asked by human resource managers. The performance evaluation is going through frequent business assessments with line managers, the creation of following up mechanisms, a particular focus on continuous coaching, the implementation of performance management system, use of performance appraisal, as business assessment, team evaluation, customer and individual performance appraisal and finally the use of performance of quality indicators. To make it apply, corporate compensation are necessary, such as salary review and promotions. [...]
[...] Implementing appraisal is also a major concern as it can result a poor performance outcome if it is ineffectively done. To conclude, I think that performance management will continue to have an important role in HRM practice, as employees need guidance focus on their skills to achieve organizational objectives and values, which means to improve efficiency at work. Appendix: Performance Management cycle stages): Planning Managing Reviewing Rewarding performance Bibliography: - Bratton J. and Gold J. (2003). Human Resource Management: Theory and Practice (3rd edn) Palgrave macmillan, p249-275. - Redman, T. and Wilkinson, A. (2001). [...]
[...] In that mix, we identify both quantifiable and qualitative comments. The use of service guarantee as price matching guarantee, which involve refund payment if organization doesn't reach the standard urge them to be focus in performance appraisal ratings toward customers. Different methods are available to collect data: customer surveys, surveillance technique and use of mystery shopping (Miles, 1993). - Team-based appraisal is possible since the timework is restructured into interdependent work teams. Because teams are the closest units to work delivery, they are given credibility in term of allocating work task, setting objectives, recruitment and discipline errant members. [...]
[...] Most measurements present a quantifiable result. After that, organizations will try to translate quantification into qualitative measurement, that is to say comment the metrics. However, research exposed by Pettijohn et al in 2001 suggests that the criteria that are used to judge performance need to be controllable by those being judged, if not it will affect once again the motivation of the employees. To argue that, Levinson in the 70's viewed the best practice of management by objectives as self-defeating, based on “reward-punishment psychology”. [...]
[...] Formal PA has a shorter existence but still a consistent history. In 1989, Randell identifies the silent monitor, with the use of white for good and black for bad. Nowadays, it has become an imperative element in HRM practices. Through the years, many wealthy research and academic studies have been led to improving PA's effectiveness, and accurate in assessing employee performance. But managers seem reluctant to use research in their practice, which create a huge conflict (Banks and Murphy). This gap isn't entirely due to the fact that managers aren't influenced by researchers but more on the fact that little research has taken into account formal case study application. [...]
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