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Background Information & Organizations stresses

Organizations stresses a lot on their stakeholders and employees are considered to be the most important stakeholders for most of the organizations. Many organizations consider employees as their value assets and they motivate them to perform the desired task. Performance appraisal is also known as employee appraisal and it is actually a method the performance of an employee is evaluated. The core aspect of performance appraisal is to modify the work behavior (Ilgen & Pulakos 1999).

The history of performance appraisal is considered to be quite brief and the roots of performance appraisal are linked with the early 20th century in the period of Taylor and Motion studies. The appraisals started back in the Second World War that is their history is comprised of total 60 years. However, in a broader sense the practice of appraisals can be considered as a very ancient art. Dulewicz (1989) stresses a lot on performance appraisals and he believes that appraisals are inevitable and they are universal.

In every structured systems people will judge the work performance of others and it includes their subordinates, naturally, arbitrarily and informally (Dulewicz 1989). Performance evaluation techniques are widely used by different organizations to carry out their human resource management

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practices in an effective and an efficient way. These performance evaluation techniques are used by the employers to evaluate the performance of employees.

The impact performance appraisals varied with employee to employee. Most of the employees like their involvement in the performance appraisals and they believe that it is essential activity of the organization. However, certain employees depict their indifferent attitude in evaluating the performance appraisals. Carroll and Schneier (1982) explained that the core purpose of performance appraisal is the provision of clear and absolute performance based feedback to the employees.

Ashsford and Cummings (1983) believed that employees are motivated to obtain information about their job performance which actually allows these employees top regulate their behavior with respect to certain acceptable standards. A certain level of uncertainty is produced regarding the adequacy of the behavior of employees because of the unpleasant internal state (Morrow, Jackson, Disch, & Mood 2006). 2. Performance Appraisal Methods There are different performance appraisal methods that are widely used around the world.

The study of Locher and Teel (1977) found that there are three most common appraisal methods that are generally used. These three methods are rating scales, essay methods and result oriented or MBO methods (Murphy & Cleveland 1995). 2. 1 Rating Scales This method of rating scales is considered to offer a high degree of structure for performance appraisals. The characteristic of each employee or trait is rated on a bipolar state that usually is comprised of several points from poor excellent or some similar arrangement.

The traits that are assessed on these scales actually include the attributes such as cooperation, communication skills and an employee’s ability to communicate, punctuality and technical working skills (Smither 1998). The nature and scope of the traits that are selected for inclusion is limited only with the imagination of designers scale. A major issue that arises in selecting the appropriate traits is that they should be relevant to the employee’s job characteristics. The traits that are selected by some organizations have been regarded as unwise and they resulted in legal actions on the grounds of discrimination.

2. 2 Essay Methods The essay method approach is famous among many employers and the appraiser prepares a written statement usually in the form of an easy about the employee that is being apprised. This written analysis of the employee usually revolves on describing specific strengths and weaknesses in job performance. It also identifies the course of action and the problem area of the employee (Smither 1998). This statement can be written and edited by the employer (appraiser) alone or it can be composed with the collaboration of appraise.

2. 3 Management by Objectives Management by objectives methods was initiated in the year 1950’s by a legend management theorist Peter Drucker. It is basically a performance appraisal method which is result oriented. In this method employee performance is measured by examining the extent to which the work objectives have met (Smither 1998). Both the supervisor and the subordinates establish their joint objectives and in this scenario the subordinate might be targeting a certain target.

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