Performance appraisal (PA) is a process of setting some targets for the individuals which they are required to achieve. Performance of individuals is evaluated by the process and good performance is acknowledged by rewarding them which may be financial rise in pay, popularly known as increment or upward movement in the hierarchy i.e. promotion. Traditionally PA is a straightforward process where the manager can only review the performance of his subordinates annually. However, in order to meet the increased expectations of employers, customer demand and better output, PA plays a crucial role for which it has become a part of a wider HRM strategy called performance management (PM). Traditional PA has some limitations that can be minimised by following multi-rater PA system. 360-degree feedback and balanced scorecard are playing important role as recent innovations in the PM system. These two tools are being widely used in both public and private organisations of developed countries like UK, USA, Germany, France; even in the public sectors in Bangladesh, Non-Government Organisations (NGOs) in particular. This paper aims at discussing the traditional PA system experienced with several problems which the new innovations such as 360 degree feedback and balanced scorecard have attempted to overcome.
Orthodox & Radical Critique of Performance Appraisal and Recent Innovations in Performance Management
M. Rezaul Karim*
Abstract:Performance appraisal (PA) is a process of setting some targets for the individuals which they are required to achieve. Performance of individuals is evaluated by the process and good performance is acknowledged by rewarding them which may be financial rise in pay, popularly known as increment or upward movement in the hierarchy i.e. promotion. Traditionally PA is a straightforward process where the manager can only review the performance of his subordinates annually. However, in order to meet the increased expectations of employers, customer demand and better output, PA plays a crucial role for which it has become a part of a wider HRM strategy called performance management (PM). Traditional PA has some limitations that can be minimised by following multi-rater PA system. 360-degree feedback and balanced scorecard are playing important role as recent innovations in the PM system. These two tools are being widely used in both public and private organisations of developed countries like UK, USA, Germany, France; even in the public sectors in Bangladesh, Non-Government Organisations (NGOs) in particular. This paper aims at discussing the traditional PA system experienced with several problems which the new innovations such as 360 degree feedback and balanced scorecard have attempted to overcome.
1.0 Introduction
Human resource management practitioners and academics have tried to establish a relationship between human resource management (HRM) and organisational performance (Bach, 2005). This seems to be happening with the increase in competition world wide. Due to the globalisation, organisations are under pressure to increase productivity and curtail costs. This has placed HRM in a strategic position, as to increase productivity better performance of individuals becomes essential. In order to measure the performance of individuals, organisations make use of performance appraisal making it an integral part of human resource management practices. Traditionally performance appraisal was a straightforward process in which a line manager would review the performance of his subordinates annually (Bach, 2005). It was more of an annual ritual and its results were not utilized much over the course of the year. However, with the increase in employers’ expectations of greater employee performance, performance appraisal plays a crucial role. A performance appraisal is supposed to provide guidance to individuals on how they can best apply their resources to achieve the organisational goals (Brown and Benson, 2003; Townley, 1993).
An appraisal usually involves setting of targets for the individual which he is required to achieve and then in the next appraisal feedback is given on the progress (Brown and Benson, 2003). Performance appraisal was initially used to describe the process where a line manager would review on an annual basis on subordinates’ performance and then he usually would discuss the results with the concerned employee (Fletcher, 2001).
It has now become a part of a wider human resource strategy called performance management (Fletcher, 2001). Under traditional performance appraisal system it was mostly the managerial staff, professional workers and the sales staff that they were being apprised. Appraisals of board level directors were limited as they were almost half of the number comparing with other managers (Long, 1986:9, cited by Bach, 2005). Performance appraisals are used to evaluate individual performance and acknowledge good performance by rewarding it, though with the advent of 360 degree the use has widened to identifying development needs. In the traditional performance appraisal it was mostly the personality traits of the individual that were rated. It was believed that some traits and characteristics such as leadership and loyalty contribute immensely to the performance of an individual therefore making it essential to measure the same (Bach, 2005). The problem with such an appraisal lay in the fact that it was difficult to measure such traits, and to point out the exact trait responsible for better or worse performance. Assessing of personality trait of an employee is subjective to the opinion of the appraiser which may be biased by his liking or disliking for the concerned person which is also called ‘rater bias’ (Boxall and Purcell, 2003).
2.0 Purposes & Functions of Performance Appraisal
: Traditionally performance appraisal schemes are influenced by the dominant issues of personnel management. However, these tools have become ‘the best practice’ in the public and private sector in order to enhance managerial authority and increase efficiency (Bach, 2005). From the traditional viewpoint performance appraisal does the following things (Randell, 1989).
1. Evaluation: to enable the organisation to share out the money, promotions a perquisites apparently fairly
2. Auditing: to discover the work potential both present and future or individual or departmental
3. Successful planning: to construct plans for manpower, dept and corporate planning
4. Training: to discover learning needs by exposing inadequacies and deficiencies that could be remedied
5. Controlling: to ensure employee reach organisational standard and objectives
6. Developmen t: to develop individual by advice, information and through shaping heir behaviour by praise or punishment
7. Motivation: to add employee’s job satisfaction thru understanding their needs
8. Validation: to check the effectiveness o f personnel procedures and practices
3.0 Discussion
Performance appraisal, as the process of evaluating performance of individuals working in the organisation, indicates some strengths and weaknesses of concerned individual as well as organisational needs which should immediately be needed to address. For the development of employee performance and quality service and output, organisations needs to know the problems of traditional PA system so that organisations can take initiatives where the orthodox and radical critique can show the way out.
3.1 Orthodox Critique
The orthodox critique of the traditional appraisal system discusses the problems with the procedure of appraisal systems. Appraisals are used to assess the need for training, to motivate individuals to perform better and to distribute performance based rewards.
The problem arises when the appraiser is required to play multiple conflicting roles that of a monitor, judge and counsellor (Strebler et al., 2001; Wilson, 2002). These conflicting roles are organisation vs. organisation, organisation vs. individual and individual vs. individual (Figure:1)
Figure1: Conflicts in performance appraisal
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Frequently asked questions
What is the main topic of "Orthodox & Radical Critique of Performance Appraisal and Recent Innovations in Performance Management"?
The paper discusses the traditional performance appraisal (PA) system and its limitations, and explores recent innovations in performance management (PM) such as 360-degree feedback and the balanced scorecard.
What is the purpose of performance appraisal (PA) according to the text?
PA is used to set targets for individuals, evaluate their performance, and acknowledge good performance through rewards like pay increases or promotions. It's also intended to provide guidance on how individuals can best achieve organizational goals.
How has performance appraisal (PA) evolved over time?
Traditionally, PA was a straightforward annual review conducted by a line manager. It has now evolved into a broader HRM strategy called performance management (PM), playing a more crucial role in meeting employer expectations and improving employee performance.
What are the limitations of the traditional performance appraisal (PA) system?
The traditional system often relied on subjective assessments of personality traits, which can be biased. It also involved appraisers playing conflicting roles (monitor, judge, and counselor) which can create tension.
What are the orthodox critiques of the traditional performance appraisal (PA) system?
Orthodox critique highlights the problems with the procedure of appraisal systems and conflict roles of an appraiser such as monitor, judge and counsellor.
What are some of the purposes and functions of performance appraisal (PA) from a traditional viewpoint?
According to Randell (1989), the purposes and functions of PA includes Evaluation, Auditing, Successful planning, Training, Controlling, Development, Motivation, and Validation.
What is the relationship between HRM and organizational performance, as mentioned in the text?
The text highlights the increasing emphasis on the relationship between HRM practices and organizational performance, driven by globalization and the need for increased productivity.
What recent innovations in performance management (PM) are discussed in the paper?
The paper specifically mentions 360-degree feedback and the balanced scorecard as recent innovations being widely used in both public and private organizations, including in countries like the UK, USA, Germany, France, and Bangladesh.
What is the role of 'rater bias' in traditional performance appraisal?
Rater bias refers to the subjective opinions of the appraiser, which can be influenced by their personal liking or disliking for the employee, leading to potentially unfair assessments.
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- Mohammad Rezaul Karim (Author), 2007, Orthodox and Radical Critique of Performance Appraisal and Recent Innovations in Performance Management, Munich, GRIN Verlag, https://www.grin.com/document/207959
