Performance Apprasial

Introduction to this paper

This paper focuses on performance appraisal which is a method for evaluating performance of individual workers or teams and analyzes main types of performance appraisal in details including the definitions, strength, weakness and acceptance and some problems of this system. Xerox and Si.mobil corporations are two examples which have conducted different types of performance appraisal .Then it compares the different types of performance appraisal systems that have conducted by these two companies and analyze them in order find what the effective performance appraisal systems are.

Section I:

Basic introduction to the performance appraisal

Performance appraisal is a method for evaluating performance of individual workers or teams and it is an important part of performance management. It is usually carried out by the line managers and it is vital to understand their role in the whole process of performance management(教科书). Dated back to 20th century, the performance appraisal was put forward by Taylor's pioneering Time and Motion studies. Recently, it has become increasingly popular among some large organizations and the area it has been implemented in has extended to cover a wider range of people and institutions including blue-collar, secretarial and public sectors. http://www.allbusiness.com/glossaries/performance-appraisal-evaluation/4956466-1.html

The general process of performance appraisal is often composed of setting standard performance, communicating standards, measuring performance against standards, discussing results and taking action according the feedback received as the diagram below reveals.

Source: http://appraisals.naukrihub.com/process.html

The functions of performance appraisal

Generally speaking, there are the following functions of the performance appraisal:

First, it is a good way to clarify and define the performance expectations. In other words, it is very easy for the employees to understand what to do and then try their best to fulfill their goals.

Second, it is useful for the training and development because the organization could figure out both the strengths and weaknesses of their employees, then they could take proper actions to arrange the training.

Thirdly, when the performance appraisal is applied, the performance of individual, team and corporate can be improved step by step.

Fourthly, it facilitates the communications and involvement of the employers and employees. By assessing the performance, they could have more chances to communicate with each other and enhance their relationships with each other.

Last but not least, it works a lot in allocating financial rewards, determining promotion, motivating and controlling employees and achieving cultural change.

Types of performance appraisal:

There are various ways of conducting performance appraisal from the simplest rating to the more complex one such as 360 degree appraisal. Research found that lots of organizations tend to use a mixture of different types of performance appraisals and small organizations are more likely to take simpler ways of appraisal due to less capital allocated to take the appraisal and time-saving(教科书). Basic types of appraisal commonly used include annual supervisory interview, upward appraisal, 360 degree appraisal, customer appraisal and competency based appraisal. While this report will focus on upward appraisal, 360 degree appraisal, competency based appraisal as it is discussed as follows.

Upward appraisal:

Unlike traditional performance appraisal which employees' performances are always evaluated by their superiors, upward appraisal provides an opportunity for employees to give feedbacks to their managers' performance in terms of efficiency and effectiveness often through anonymous survey. To make the result more objective and accurate, it is essential to enable employees to express themselves fully without fears and nervous of reprisal by their managers (http://www.toolpack.com/performance.html). The main merits are this method of appraisal increases employee voice and empowerment, which could lead to higher commitment and involvement meanwhile showing areas where managers' performance await to be improved and some of the problems may not be fully realized by themselves (http://www.toolpack.com/performance.html),(text book). One of the major disadvantages is that it is often disliked by management.

360 degree appraisal:

Source: http://appraisals.naukrihub.com/360-degree-performance-appraisal.html

http://appraisals.naukrihub.com/360-degree-performance-appraisal.html

As the diagram shows, 360 degree appraisal is a method of performance appraisal which employees' performances are evaluated by numbers of different people in different position relative to employees that have contacts with them on their job such as their customers, colleagues, supervisors, subordinates and themselves as well. (http://appraisals.naukrihub.com/360-degree-performance-appraisal.html). It generally prevails in large organizations currently. The appraisal is usually carried out by anonymous survey and rating on scale method is frequently used. (http://www.cipd.co.uk/subjects/perfmangmt/appfdbck/360fdbk.htm) Advantages of the method of appraisal include more related people with different points of observations are involved which can produce a more comprehensive view of employees' performance and thus achieve higher accuracy and objectivity. While the main disadvantages are it is often more costly and time consuming relative to other simpler ones because more people are involved.

Competency -based appraisal:

Generally speaking,