This term paper is about the process of employee performance appraisals. To this purpose, the author starts with the disambiguation of essential terms and definitions, as well as with the explanation of employee performance appraisal aims and functions. Subsequently, the process of an employee performance appraisal is discussed, as well as the different appraisal methods. Finally, potential sources of error and possible biases are analysed.
Nobody is beyond jumping to conclusions, thus often adjudicating wrongly. Whenever people meet, regardless of private or professional context, they use to assess, to adjudicate or to condemn. In order to make the evaluation of another person less difficult, people use to lapse into clichés and stereotypes. In spite of all efforts to evaluate the employee´s performance in a fair, objective and factual way, performance appraisals always represent a subjective act, which is affected by numerous factors. Employee performance appraisals are supposed to clarify whether the respective employee is able to meet the employer´s demands. In case an employee is hired on the basis of misjudgement or rating errors, or if someone is employed for an inappropriate position, this can result in considerable costs (increased requirements during the familiarisation phase, loss of sales and profits or even loss of clients), i.e. consequential costs (searching for a new employee, re-establishing a good reputation). Inappropriate employees will not provide the expected benefit. Moreover, if the worse comes the worse, they could even damage the employer´s organisation/company.
However, the recording of the employees´ strengths and weaknesses does not only serve as a record of results, professional conduct and potentials in order to provide the best possible employment, but also as the basis for the definition of an adequate salary Performance appraisals can result in – positive or negative – personnel measures. Hence, the employee performance appraisal represents an essential leadership task of any executive.
Table of Contents
- 1 Introduction and Problem Statement
- 2 Definition of essential Terms
- 2.1 Employee performance appraisal
- 2.2 Performance rating
- 3 Performance Appraisal: Functions
- 3.1 Diagnosis
- 3.2 Coordination
- 3.3 Controlling and Monitoring
- 3.4 Basis for Decision-Making
- 3.5 Motivation
- 4 Performance Appraisal: Aims, Contents, Extent and Form
- 4.1 Employee Performance Appraisal: Aims
- 4.2 Employee Performance Appraisal: Contents
- 4.3 Employee Performance Appraisal: Extent
- 4.4 Employee Performance Appraisal: Type
- 4.4.1 Self-Assessment
- 4.4.2 Employee Performance Appraisal
- 4.4.3 Appraisal by Subordinates
- 4.4.4 Appraisal by Colleagues
- 5 Performance Appraisal: Methods
- 5.1 Grading Methods
Objectives and Key Themes
This paper aims to comprehensively examine the process of employee performance appraisals. It begins by defining key terms and outlining the aims and functions of these appraisals. The core of the paper then delves into the process itself, exploring various appraisal methods and analyzing potential sources of error and bias. The paper avoids conclusions or final judgments on the efficacy of any specific method.
- Defining and differentiating key terms related to employee performance appraisal.
- Exploring the various functions and aims of employee performance appraisals.
- Analyzing the process of employee performance appraisal and its various methods.
- Identifying potential sources of error and bias in performance appraisals.
- Examining different appraisal methods, including self-assessment, appraisal by superiors, subordinates, and colleagues.
Chapter Summaries
1 Introduction and Problem Statement: This introductory chapter sets the stage by highlighting the inherent subjectivity in human judgment and its implications for employee performance appraisals. It emphasizes the significant costs associated with hiring unsuitable employees and underscores the importance of accurate and fair performance evaluations, not only for efficient resource allocation but also for determining appropriate compensation and fostering employee growth. The chapter clearly states the paper's objective: to explore the process of employee performance appraisals, including methods, potential errors, and biases.
2 Definition of essential Terms: This chapter provides clear definitions of "employee performance appraisal" and "performance rating," drawing upon established scholarly sources like Wichert and Weber. It clarifies the distinctions between these concepts, emphasizing the systematic nature of performance appraisals and the challenges of achieving objective performance ratings due to inherent human biases and the use of both quantitative and qualitative indicators. The chapter lays a solid foundation for the subsequent discussion by establishing a common understanding of core terminology.
3 Performance Appraisal: Functions: This section details the multifaceted functions of employee performance appraisals. It outlines the diagnostic function, which involves identifying strengths and weaknesses and tracking performance trends over time. The coordination function focuses on establishing uniform assessment criteria for consistent evaluations. Controlling and monitoring ensure regular insights into employee development and performance. The chapter then explains the crucial role of appraisals in decision-making regarding human resource management, including promotions, terminations, and compensation. Finally, the motivational aspect is highlighted, emphasizing the importance of feedback for employee development and engagement.
4 Performance Appraisal: Aims, Contents, Extent and Form: This chapter expands on the aims, contents, extent, and forms of employee performance appraisals. It discusses the diagnostic function in detail, highlighting its importance for various managerial decisions. The contents section explores the significance of appraisals for executive management, team performance enhancement, and aligning individual development with organizational strategy. It clarifies the regular (typically annual) timing of appraisals, as well as the inclusion of feedback sessions with employees to set future objectives. The chapter also outlines the legal rights of employees regarding performance appraisal explanations, drawing upon the German Works Constitution Act, and examines various appraisal types, including self-assessment, appraisal by superiors, subordinates, and peers.
5 Performance Appraisal: Methods: This chapter focuses on the core of appraisal systems: the methods used. It introduces grading methods as the most prevalent approach in practice, describing how managers assign performance values to different work dimensions using rating scales. The chapter sets the foundation for a deeper dive into the specifics of these methods, although it stops short of fully detailing them.
Keywords
Employee performance appraisal, performance rating, appraisal methods, self-assessment, 360-degree feedback, bias, subjectivity, human resource management, performance management, objective evaluation, qualitative criteria, quantitative criteria, employee development, motivation, legal aspects, German Works Constitution Act.
Frequently Asked Questions: Employee Performance Appraisal
What is the purpose of this document?
This document provides a comprehensive overview of employee performance appraisals. It defines key terms, outlines the functions and aims of appraisals, analyzes various methods, and identifies potential sources of error and bias. The document is intended for academic use and focuses on a structured and professional analysis of the topic.
What topics are covered in the document?
The document covers a wide range of topics related to employee performance appraisals, including: defining key terms (employee performance appraisal and performance rating); outlining the functions of appraisals (diagnosis, coordination, control, decision-making, and motivation); exploring the aims, content, extent, and forms of appraisals (including different appraisal types such as self-assessment, appraisal by superiors, subordinates, and colleagues); analyzing various appraisal methods (with a focus on grading methods); and identifying potential sources of error and bias in the appraisal process.
What are the key terms defined in the document?
The document clearly defines "employee performance appraisal" and "performance rating," highlighting the distinctions between these two concepts. It emphasizes the systematic nature of performance appraisals and the challenges of achieving objective performance ratings due to inherent human biases and the use of both quantitative and qualitative indicators.
What are the functions of employee performance appraisals?
Employee performance appraisals serve several crucial functions: diagnosis (identifying strengths and weaknesses); coordination (establishing uniform assessment criteria); controlling and monitoring (regular insights into employee development and performance); providing a basis for decision-making (regarding human resource management, promotions, terminations, and compensation); and motivation (providing feedback for employee development and engagement).
What are the aims, content, extent, and forms of employee performance appraisals?
The document details the aims of appraisals, focusing on their use for diagnostic purposes in managerial decisions, team performance enhancement, and aligning individual development with organizational strategy. The content, extent (typically annual), and various forms of appraisals (self-assessment, appraisal by superiors, subordinates, and peers) are also thoroughly discussed. Legal rights of employees concerning performance appraisal explanations are also mentioned, referencing the German Works Constitution Act.
What appraisal methods are discussed?
The document primarily focuses on grading methods as the most prevalent approach in practice. While a detailed explanation of specific grading methods is not provided, the chapter lays the foundation for a deeper understanding of these methods.
What are the potential sources of error and bias in performance appraisals?
The document highlights the inherent subjectivity in human judgment and its implications for the accuracy and fairness of employee performance appraisals. It emphasizes the significant costs associated with hiring unsuitable employees and underscores the importance of accurate and fair performance evaluations. While not explicitly listing all sources, it implicitly points to biases inherent in human judgment as a significant source of error.
What are the key takeaways from this document?
The key takeaway is a comprehensive understanding of the complexities involved in employee performance appraisals. The document emphasizes the importance of clear definitions, systematic approaches, awareness of potential biases, and the multifaceted nature of the appraisal process. It provides a framework for further research and analysis in this critical area of human resource management.
- Citar trabajo
- Mandy Witt (Autor), 2020, The Process of an Employee Performance Appraisal. Its aims, functions and methods, Múnich, GRIN Verlag, https://www.grin.com/document/981431
