Performance Appraisal versus Performance Management & approaches of Performance Appraisal
Traditional performance appraisal simply involves evaluative supervisory comments on past performance. Such a process does not involve any kind of management, per se, as the only performance that can be managed is present and future performance. Performance appraisal involves hierarchical, downward communication from supervisor to subordinate concerning the value the supervisor places on the subordinate’s performance (Mello, 2013).
Performance management is the continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with organisation’s goals. In comparing performance management and performance appraisal, “the distinction is the contrast between a year-end event – the completion of the appraisal – and a process that starts the year with performance planning and is integral to the way people are managed throughout the year (Dessler and Varkkey, 2011)
Basically, performance management is beyond performance appraisal, and does not just deal with how employees perform at the end of the year; it takes care of the employees throughout the year and also the learning and development part of the each employee for the future. Performance management ensures that the employees’ goals are aligned to organisation’s goals. It also modifies itself based on the employee performance at every stage so that employees are in track and deliver to their potential. It also helps employees improve their potential and productivity. Key distinction between Performance Appraisal and Performance Management could illustrate in table 01 as follows, (Rath A, 2018)
01. Performance Appraisal versus Performance Management
|
|
Performance Appraisal |
Performance Management |
|
Time period |
Past |
Past, present and future |
|
Focus |
Create records; document performance problems |
Link employee work activities to specific business objectives and strategy |
|
Nature of communication |
One-sided, downward, directive; "rebuttal" sometimes allowed |
Two-way |
|
Employee role |
Passive |
Active participant |
|
Formality |
High formality, written forms with signatures |
Informal, verbal |
|
Timing |
As prescribed (annual) |
Spontaneous & ad hoc needed |
|
Basis of relationship |
Power |
Collegiality |
|
Role of supervisor |
Authority figure |
Coach, motivator, partner |
|
Outcomes |
Compensation decision; task directives |
Participation; enhanced, targeted performance; improved relationships |
Source: Mello, 2013
Approaches of Performance Appraisal.
Traditionally, most employers base pay and promotional decision on the employee’s appraisal. Secondly, the appraisal lets the boss and subordinate develop a plan for correcting any deficiencies, and to reinforce the activities the subordinate does right. Third, appraisals provide an opportunity to review the employee’s career plans in light of his or her exhibited strengths and weaknesses. Fourth, appraisals play an integral role in the employer’s performance management process. Fifth, in Indian firms where HR information systems are not well evolved, the reports of appraisals serve as the source of most of the current employee information (Dessler and Varkkey, 2011).
There is a great degree of variation in the approaches, design and use of performance appraisal system and also in the formats. Three key approaches used in making performance appraisal include (Balasubramanian, 2002):
· Traditional Approach: This approach is highly systematic and takes into account the measurement of employee characteristics and/or their contribution or both. In this system all employees are rated in the same manner utilizing the same approach so that the rating of separate personal can be compared.
· Casual Approach: This approach is an unsystematic use and often haphazard appraisal system which was commonly used on the past, but now it has given a place to more formal methods, the main basis being seniority or quantitative measure of quantity and quality of output for rank and file personnel.
· Behavioural or Modern Approach: This approach is based upon mutual goal setting and appraisal of progress by both appraiser and appraisee. This lays emphasis on behavioural values of fundamental trust in goodness, capabilities, and responsibilities of human beings
List of references
Ø Balasubramaniam COL, 2002, Personnel Management, Everest Publishing House, 5th Edition.
Ø Dessler G, Gary & Varkkey BIJU, 2011, Human Resource Management, Twelfth Edition, Pearson Publication.
Ø Mello JA, 2013 Strategic Management of Human Resources, Third Edition, Cengage Learning.
Ø Rath A, 2018, “Evolution of Performance Management System”, Volume No.06, Issue 02.
Performance management is valuable only if organizational policies, practices, and design features are aligned and bundled with HR practices to create the mutually supporting circumstances that give required output (Gruman and Saks, 2011).
ReplyDeleteAccept your comments & in addition to that, Employee Performance Management [EPM] effectiveness is paramount. but it has been problematic to define (Chiang and Birtch, 2010; Claus and Briscoe, 2009; Festing et al., 2010; Levy and Williams, 2004) and attempts to clearly define effectiveness have been at best piecemeal. However, two definitions have been selected that seem to capture the essence of effectiveness.
ReplyDeleteFirst, from the perspective of employees, a definition extended by Maley and Kramar (2007) describes an effective EPM as a process that has value to employees, in particular, their career development, the impact on their motivation and their perceptions of the overall benefit of the EPM to the firm.
Second, from a management perspective, a study endorses Ikramullah et al.’s (2016) definition that explains effectiveness through the lens of EPM purpose. According to this line of argument, the effectiveness of EPM is contingent on management’s intended purpose.