Evaluate The Different Methods Of Performance Appr

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Evaluate the different methods of performance appraisal and consider whether or not it should be linked to pay. Performance appraisal forms a part of the performance management process. It is “arguably, the most frequently used single instrument for managing individual performance” (Banfield and Kay, 2008:281), which is why there are still many organisations that choose to conduct performance appraisal as a stand-alone activity. Grote (2002:1) defines performance appraisal as a formal management system that provides for the evaluation of the quality of an individual’s performance. Whereas Walters (1995), states that “It is not even only about meeting individual objectives. It is about directing and supporting employees to work as effectively and efficiently as possible in line with the needs of the organisation.” Performance appraisal is a process that usually begins with the appraiser, often the manager, setting objectives and action plans for each individual employee. These are job specific and are based on the abilities of the jobholder. It is often a one-to-one discussion and it provides both the employee and the employer with the opportunity to take an overall view of the performance of each individual. Foot and Hook (2008:249) displays the work of Randell et al. (1984) which suggests that for most employers there are three main uses for appraisal reviews: Performance, Potential and Reward. Therefore in summary, performance reviews focus on establishing the current levels of performance, identifying potential for future improvements along with any development necessary for succession and finally as an approach to distributing rewards, often of monetary value, for outstanding performance. As simple as performance appraisal may seem, “it is often suggested that as many as two-thirds of all appraisal schemes are abandoned or altered substantially within

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