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the impact of performance appraisal on organisation productivity Free essay! Download now

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the impact of performance appraisal on organisation productivity

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performance appraisal on organisation productivity


This is a dissertation proposal in the HRM field
Performance Appraisal and Its Impact
On Organization Productivity

Performance Appraisal is known to be the method and system of evaluating if organizational objectives are achieved. It would analyze how the performance of staff and personnel have progress satisfy and meet the needs of the firm (Debrah et al;2003) Performance Appraisal is most often undertaken with the aim of improving performance, motivating employees and/or allocating rewards. An honest and accurate assessment of current performance can be a strong driver for future learning, development and performance improvement. The process of performance feedback and setting of improvement target can itself be a strong motivation (Loke& Latham 1990) and for there to be equitable distribution of rewards some fair method of comparing contribution between individual is require otherwise unfair system will fall into what Herzberg termed ’hygiene factor’ and be demotivator (Mullins 2005).
According to Hansen there are two approaches to Performance appraisal. Tradition (organization or overall) approach which concerned with the overall organization and has been involved with past performance, while developmental approach viewed the employees as individuals and has been forward looking through the use of goal setting.
A survey data (Long, 1986; Bevan and Thompson in IPM 1992) shows that the vast majority of organizations already have some kind of organizations already have some kind of appraisal arrangement in place. A recent survey by Locher and Teel (1988) shows the organsiations in North America are continuing to increasing the importance of PA. Survey also shows that the use of PA for multiple purposes has increased from 11 per cent to 30 per cent.
Most of the organization are satisfies with the appraisal process and they think that appraisal process increases the overall performance of the organization (Shah, 1995). However appraisal system becomes failure if there is lack of support from management or companies do not bother about the Performance Appraisal process.
Background and Problem Statement
The changing environment for organization require new products and services, new organizational structure and system, and hence new competencies and working practices for employees. Increasing competition and ever-greater demand from customers, investors and government means ‘high performance’ and become a requirement for organizational process success (Boxall & Purcell 2003). Against this background of increasing change and higher performance, how can organization ensure that employees understand the part they play in achieving organizational objectives and have the required skills, knowledge and attitude to do so? How can Appraisal play important role in achieving companies outcomes.
Upon the implementation of Performance Appraisal, there are many recognizable benefit. However it remains a question regarding the effectiveness of the appraisal system to improve the employee performance and hence company performance.
This research aim to explore and analyze the ...

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