The Role of Performance Appraisals on Employee Behaviour

The role of Performance Appraisals on Employee Behaviour

Employee performance appraisal is an effective tool or vehicle for assessment of employee performance at work, and is used as a tool to track improvements (Lawler and McDermott, 2003).

The origins of measuring Performance Appraisals date back to the 1900’s. Scott during World War 1 is credited with creating performance measurements. This evolved during the 1950’s, into a period where self-assessments and personality tests became a formal system of measuring future productivity among employees. As the evolution continued, setting organizational and individual goals came in around the 1960’s, this era used goals as a means of evaluating employees. The 1970’s saw the use and rise of psychometric tests as an effective evaluation tool. Then finally the 1990’s provided performance management as a study within human resource management. Since then, the literature states many companies use performance appraisals as a means of measuring and keeping motivated a company’s most important capital, it’s employees.

Most performance appraisals aim to be fair, accurate and purposeful. However, there are many factors that make the reality of being fair, accurate and purposeful difficult to achieve. Literature states there are two main factors that influence performance appraisals; the source and purpose. The source may be direct supervisors, managers, customers, peers or even one’s self as a means of evaluation. Employees are usually assessed by their immediate supervisor. The purpose of the appraisal is the next factor. The appraisal may be used as a means for upward mobility within an organization or used to determine one’s salary scale.

Performance Appraisals is a means of controlling employee behavior and productivity. Performance measurement is a tool used to motivate staff to be more productive. Performance appraisals are an effective way of measuring staff output. In creating a “culture of excellence” or an organization that is competitive in nature, and are therefore an effective means of evaluating staff outcomes. Most companies aim to get the best out of their employees. In an effort to keep a competitive advantage in a global marketplace performance appraisals are used to exploit new and always evolving human resources. There are many types of performance appraisals used, this is usually dependent on the culture of the organization, type of industry or amount of employees. The productivity is normally a quantitative measure of output or quality of service or performance. In most cases however, an employee’s performance is usually based on motivation, abilities and culture (Elliot, 2015)

Performance evaluation is a platform used by employers and is often a beneficial tool for employees. The benefits to employers include recognizing high performers, distinguishing among employees and ensuring consistency. Appraisals are also used to align all employees with the company’s objectives. The goals of each employee should be linked to the broader strategic plan for an organization. “When properly executed, an appraisal instrument can become a powerful tool for establishing corporate culture and ensuring that employees understand and act on the organization’s broad strategic goals” (Segal, 2000). Thereby, creating a culture of excellence in an organization. Creating an environment where employees strive to be competitive and achieve both their individual goals and the goals of the organization.

On the other hand, Performance Appraisals for some employees create dread, fear and trepidation, the complete opposite of why it was created. Literature provides some reasons employees are apprehensive about Performance Appraisals. There are five main reasons provided, these are; Bias, Hypocrisy, Rater Errors, poor communication and poor feedback. Employees sometimes view their appraisals as biased; lacking an objective criterion for assessment. These assessments are sometimes subject to human psychological factors (gender, race, likes or dislikes) based on perception. This often leaves employees who are judged on these non-objective criteria with a perception of unfairness and less job satisfaction, which often leads to high employee turnover. Most companies have written policies guiding employee assessments, when this isn’t followed often employees view the assessment as hypocritical and cynicism, disappointment and distrust become a part of the organization among subordinates. This is problematic in organizations that