Organizations that align their performance to institutional objectives realize desirable outcomes. The fact that modern organizations are taking practical measures to improve their efficiency, effectiveness, and appropriateness is indisputable. They are abandoning traditional approaches that place undue emphasis on accounting for costs and inputs, and assuming more reliable and credible strategies that encourage effective use of resources. Accounting is important for any organization that wishes to realize its goals and objectives. Information that appraisal systems generate influences objective decision-making and facilitates transparency. In addition, it enables an organization to understand the abilities of its employees and devise suitable ways of furthering and sustaining individual and institutional growth and development (Arthur, 2006). Although certain appraisal systems are faulty, they remain vital tools for monitoring individual performance and enhancing overall progression towards corporate goals.
Performance appraisals determine the current levels of efficiency of employees and facilitate future planning in a bid to meet the needs of the clients (Bhatawdekar & Bhatawdekar, 2013). Information pertaining staff competencies allows effective decision making with respect to areas of improvement. In this regard, organizations utilize the evaluations to ensure deserving employees benefit fully from the opportunities for development. Further, the reports enable managers to make amendments and ensure employee input contributes to attainment of organizational outcomes.
In their research, Bhatawdekar and Bhatawdekar (2013) contend that peak performing organizations rely on the successes as well as efforts of their staffs. Such corporate entities recognize employee efforts and praise or redirect them appropriately. Performance appraisals are imperative because they allow the managers to discuss the functioning of employees and plan for future operations. Evaluating employee abilities in light of organizational objectives enables organizations to ensure they have sufficient and relevant skills at all times. This gives these entities a sense of direction and enables them to develop suitable ways of attaining their goals. Additionally, it accords them a competitive edge in the current complex business environment.
From a strategic point of view, appraisals give companies a chance to identify the support that employees require in order to optimize performance. Relative platforms enhance effective flow of information from the managers to the employees (Arthur, 2006). The discussions enable employees to voice their concerns, give viable contributions, and ask questions regarding their uncertainties. Information from employee feedback informs decision making with regard to equipping employees and attaining best performance.
Arthur (2006) posits that performance appraisals act as motivational tools. In this respect, evaluating the performance of staffs helps in determination of their effectiveness and commitment to achieve set targets. This motivates the individuals and gives them a chance to understand and appreciate their performance levels as well as develop approaches that can enable them improve future operations. The impacts are particularly positive when employees perceive them positively and exhibit a willingness to change. This is particularly so in instances where the evaluation tools are objective. They motivate employees to sharpen their skills and competencies in order to meet targets at both the individual and organizational levels.
Ideally, performance appraisal systems should give organizations a chance to evaluate their current positions and make sustainable improvements. However, there are certain aspects of evaluation tools that undermine their credibility and ability to meet this goal. Bhatawdekar and Bhatawdekar (2013) indicate that defective appraisal systems are counterproductive and have far reaching effects on the entire process. One of the common prejudices that compromise the rating procedure includes individual biases. Subjective feelings determine whether the supervisors like or dislike certain employees. They stem from faith considerations, information obtained from work mates, family background, racial status, and so forth. These have direct effects on the objectivity of the rating tools and can undermine their credibility.
Another notable bias includes basing the performance of employees on their previous reports. In this respect, Arthur (2006) points out that certain managers presume that the behaviors and mannerisms of employees with respect to performance are static. This makes them to ignore the current scenario and base their rating on the outcomes of previous appraisals. In this respect, performance appraisals fail to provide an actual reflection of the levels of performance. Certainly, it undermines objective decision making and prevents the organization from making credible changes. In this sense, defective evaluation tools are counterproductive.
Regardless of the foregoing prejudices, performance appraisals are important for enhancing the overall performance of organizations. Inherent evaluation helps in determining the abilities of employees and the contributions that they make to effective institutional functioning. Through these deliberations, both managers and subordinates have an opportunity to ask questions and make sound suggestions. Based on the outcomes, organizations make timely changes and align the competencies and abilities of their staffs to strategic goals and objectives. Most importantly, the tools ensure effective planning that allows for efficient use of available resources. Nonetheless, there are certain prejudices, such as personal biases and basing current performance on past reports. Irrespective of the shortcomings, appraisal systems are imperative for enhancing employee performance and ensuring that organizations achieve their objectives.
Arthur, D. (2006). Performance appraisals: Strategies for success. New York: Amacom.
Bhatawdekar, S. &Bhatawdekar, K. (2013).Essentials of performance management and performance appraisal. USA: Publishing Division of Prodcons Group.