Strategic Advantages Of Performance Appraisal

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Strategic Advantages of Performance Appraisal
BUS303: Human Resource Management
Professor Anwar Oct. 26, 2014
A company’s success starts with its human assets and how well they perform. Effective performance appraisals lead to better productivity, more motivation, better attitudes in the work place, integrity, and overall a better team working together to accomplish the company’s objectives. Constantly evaluated employee performance leads both individual improvement and the overall company’s improvement as well. Effective performance evaluation helps an organization do many things including giving bonuses to the ones who earn it, establishing good feedback and communication to every employee so they know exactly where they stand in the company, and also it helps managers find the employees who just don t meet the standard. Performance appraisals can also assist in the recruiting and training process by providing HRM’s with the information they need to evaluate the candidates.
Productivity in a company is what produces profit and it all starts with the employees. “Employee productivity can then be defined as the ratio of the actual employee production to the planned or anticipated production for the core set of functions, duties, and responsibilities of the job performed.” (Youssef, 2012) Employee productivity is how well the employees do their specific tasks assigned to them. Performing at a higher level than your peers is what sets you apart from them and this is what motivates employees. Performance appraisals will let the employee know exactly what kind of numbers they are producing and whether those numbers are good for the organization. If an employee knows what they need to strive for then that gives them an incentive to work hard and be successful.
Attitudes in the work place can positively and negatively affect a company’s success. Negative attitudes obviously need to be corrected and a good appraisal system will know who the negative employees are and correct them. Not only are they bringing themselves down, but negativity in a work environment can bring other employees down and can be a distraction. In my workplace if someone looks down or depressed or just plain has a bad attitude, corrective action is taken immediately by our higher ups. A successful and productive work place needs positivity, it’s that simple. “Performance appraisal systems that account for attitude recognize that employees with positive attitudes are valuable assets, and these systems provide the means to properly recognize and reward these employees for these attitudes.” (Youssef, 2012) Positivity can only be beneficial to a company good evaluation systems will recognize these valuable employees in a heartbeat because they know that the more positive energy you have the more productive you will be as a team.
Effective performance appraisals are strategic to a company’s success yes, but HR’s must be careful as to not form biased opinions when evaluating employees, and they must also be very clear of what is expected of the employees. “Organizational policy requires supervisors to establish performance standards for each employee at the