Why Performance Appraisal Is Quite Important In Any Organization?
Employee’s performance appraisal is quite important in any organization. An appropriately carried out appraisal can be beneficial to both employees and their organization. For an individual employee, it can provide information on the areas of improvement and identify specific training needs while for an organization, appraisals can lead to its overall productivity (Lo?pez, 2008). Performance review is a method used in measuring employee’s effectiveness and efficiency at the workplace. This report will focus on the possible advantages and disadvantages that are likely to come from the abandonment of Formal reviews by Accenture.
Much literature has been written about performance reviews. (Cunneen, 2006)argues that performance reviews is the most feared process in the organizational calendar .He also states that many managers detest carrying out performance appraisal in their organization as it leads to shallow discussions that may not improve employee performance .(Colville and miller,2011) argue that implementation of performance reviews is a change process which necessitates an understanding the current and desired state of an organization.
Performance appraisals are carried with an intention of meeting certain targets, particularly improving individual and organizational performance. Depending on how effectively they are carried out performance reviews can be successful or unsuccessful. Based on the reason given, there is a clear picture of the fact that performance reviews had failed to achieve their initial targets of improving employee’s performance. I believe that abandoning formal reviews was actually good for the organization (Mosley,2013).
My main argument for this first is that they had failed to achieve their initial target of promoting better staff performance. Additionally, the cost of performance can be quite expensive if the process is valued in terms of the time spent. Approximately it takes 3 hours to prepare and meet a single employee for the purpose of performance review (Tapamoy,2008). Assuming that each employee at the organization earns a total of 30$ every hour and a manager earns 50$ per hour. If we multiply this by the number of hours spent in performance reviews and multiply by the actual number of 330 000 employees the total cost for the whole process would be approximately $79.2 Million. This figure represents the total amount of money paid to employees and managers for hours not spent in productive work. During this time managers and direct their efforts away from their work and focus on sorting employees files in order to make the process more effective. On the part of employees, there is so much anxiety brought about by the process, they tend to spend so much time focusing on how the process will be, what they will hear during the review process (Hayashi, 2012). The anxiety may also extend to groups within an organization and they may spend much time discussing what they expect from the process and their concerns instead of engaging in productive work. Based on the costs that are likely to be saved by eliminating performance reviews the decisions can be said to be appropriate.
Despite the fact that eliminating performance reviews in an organization can be actually good because of its immediate financial benefits to an organization, it can also cost an organization significantly. Among the shortcomings eliminating conduct performance reviews is the fact that employees are denied an opportunity to be provided with feedback about their performance (Winter, 2009). Employees also miss a chance to get information on the areas that they need to improve in order to better their performance. Removal of Employee performance reviews also deny employees an opportunity to get perks for good performance (Aly & El-Shanawany,2016).Providing employees with regular feedback as well as information on areas of improvement perks for good performance have been viewed as some of the factors that motivate employees to perform better and be more productive (Osabiya,2015). Apart from monetary remuneration and other incentives, encouraging words from their managers can also help in improving their overall performance. However, with the elimination of performance reviews, all these benefits are withdrawn. This can have a negative direct impact on employee motivation which can affect their productivity and the overall productivity of the organization which may lead to the collapse of an organization in the long run (Girdhar,2008).
The process also presents an opportunity for managers to identify lazy and dishonest employees within the organization (Cintrón & Flaniken,2011). Such employees can cause a lot of trouble including slowing down the overall progress of the organization. Among the strategies that can be used on these employees would be to either remove them or request them to follow guidelines. With the withdrawal of performance appraisal, it might not be entirely possible to identify and deal with some of the issues raised by lazy and dishonest employees which can lead to poor productivity of an organization as well as disable it from being competitive (Smither & London,2009). The above outcomes could therefore end up costing the organization more than the organization saves by eliminating formal performance reviews.
With the elimination of performance reviews the organization will still have a responsibility of monitoring, accessing and improving the performance of their employees. They can achieve this through a number of strategies. Gaining staff commitments on meeting objectives can be one of the strategies that can be used to manage employee’s performance in the absence of performance of performance reviews. The organization can mutually agree with their employees on what is expected of them and have them commit themselves to the achievement of the established objectives. This will require the organization to effectively communicate their objectives to the employees as well as working with them to write down objectives. This will facilitate total trust and commitments towards the established objectives (Arthur & American Management Association, 2008).
Employee training and development can also be an effective strategy of monitoring employee performance. By adoption of training and development programs at the organization, the organization can ensure that their employees are instilled with the necessary skills needed to effectively undertake their assigned roles and responsibilities. This can be an effective strategy of ensuring that the performance of employees always remains high. The organization can also shift focus on the recruitment and selection process. Recruitment and selection stage plays an important role in determining the nature and attributes of the workforce available in an organization (Adams,2013). The organization can ensure that it uses the best recruitment strategies and select the best candidates among the applicant. This can be an effective strategy of ensuring that the performance of the organization is not affected.
Encouraging teamwork and giving autonym to employees can also be an effective strategy for accessing employee’s performance. This can facilitate elimination of the tensed relationship that exists between managers and their employees which facilitate performance-based discussions between employees and their supervisors (Bacal,2012). Through such discussion, it can be possible to access employee’s performance and provide the necessary support. Giving the employees autonomy can also be used as an effective tool trough evaluation of the decisions made by employees in the course of their work. It also provides them with a learning opportunity which they can use to make better decisions and improve their performance (Max & Bacal,2013).
The use of performance support tools can also be an effective strategy to improve employee’s performance. Through provision of learning aids to provide the necessary on-the-job support which can leading to an improvement in their performance. Apart from that, promoting from within the organization can also be an effective strategy to keep the performance of their workforce high at all times. Employees become more productive if the prevailing Conditions within the organization provide them with an opportunity to. Proving favorable working conditions can also be an effective strategy of improving employee’s performance.
Based on the above analysis it is evident that performance reviews have both advantage and disadvantages for an organization like Accenture .Depending on how effectively the process is carried out, it can achieve or fail to achieve its objectives. However, doing away with performance reviews can result to financial benefits for the organization. The organization can use strategies such as training and development, encouraging team work at the workplace and giving employees autonomy in order to improve their performance.
Aly, N. A. E. F. M., & El-Shanawany, S. M. (2016). The Influence Of Performance Appraisal Satisfaction On Nurses' Motivation And Their Work Outcomes In Critical Care And Toxicology Units. European Scientific Journal, 12(20).
Cintrón, R., & Flaniken, F. (2011). Performance Appraisal: A Supervision or Leadership Tool?. International Journal of Business and Social Science, 2(17).
Colville, K., & Millner, D. (2011). Embedding performance management: understanding the enablers for change. Strategic HR Review, 10(1), 35-40.
Cunneen, P. (2006). How to improve performance management. People Management, 12(1), 12.
Guerra-Lo?pez, I. (2008). Performance evaluation: Proven approaches for improving program and organizational performance. San Francisco: Jossey-Bass.
Mosley, E. (2013). The crowdsourced performance review: How to use the power of social recognition to transform employee performance.
Osabiya, B. J. (2015). The effect of employees motivation on organizational performance. Journal of public administration and policy research, 7(4), 62-75.
Tapamoy, D. (2008). Performance appraisal and management: Concepts, antecedents and implications.
Hayashi, S. K. (2012). Conversations for creating star performers: Go beyond the performance review to inspire excellence every day. New York: McGraw-Hill.
Winter, G. (2009). The man who cured the performance review. Richmond, Vic: Jossey-Bass.
Arthur, D., & American Management Association. (2008). Performance appraisals: Strategies for success. New York: American Management Association.
Adams, S. (2013). Words you don't want to hear during your annual performance review. Kansas City, MO: Andrews McMeel.
Girdhar, P. (2008). Performance evaluation of pumps and compressors. Berlin: Deutsche Babcock-Borsig AG
Falcone, P., & Tan, W. (2013). The performance appraisal tool kit: Redesigning your performance review template to drive individual and organizational change. New York: AMACOM, American Management Association.
Max, D., & Bacal, R. (2013). Perfect phrases for performance reviews: Hundreds of ready-to-use phrases that describe your employees' performance (from unacceptable to outstanding). New York: McGraw-Hill.
Smither, J. W., & London, M. (2009). Performance Management: Putting Research into Action. New York, NY: John Wiley & Sons.
Pulakos, E. D., & Wiley InterScience (Online service). (2009). Performance management: A new approach for driving business results. Chichester, West Susssex, U.K: Wiley-Blackwell.
Richardson, F. W. (2014). Enhancing strategies to improve workplace performance (Doctoral dissertation, Walden University).
Hope, J., & Player, S. (2012). Beyond performance management: Why, when, and how to use 40 tools and best practices for superior business performance.
Solomon, C., & American Society for Training and Development. (2009). Select a performance management system: Performance improvement. Alexandria, VA: American Society for Training & Development.Bacal, R. (2012). Manager's guide to Per
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