EMPLOYEE EVALUATION IN THE ORGANIZATION
Employee
Evaluation in the Organization
Employee evaluation measure the performance of
employees (performance appraisal) as a basis for making decisions on job re-assignment,
promotion or performance-related reward (Armstrong and Taylor ,2014).
Performance appraisal (PA) is a formal system of
review and evaluation of individual or team task performance. A critical point
in the definition is the word formal, because in actuality, managers should be
reviewing an individual’s performance on a continuing basis (Eisalou,2014).
In the organizational context, performance is usually
defined as the extent to which an organizational member contributes to
achieving the goals of the organization (Islam & Rasad,2006). The
future competitiveness and the performance of an organization is affected by
the employee evaluation and selection system (Golec & Kahya,2007).
Usually, an employee evaluation system is widely used
for administrating wages and salaries, giving performance feedback, and
identifying individual strengths and weaknesses. According to the Mathis and
Jackson (2007), an employee evaluation has two roles in organizations.
· Making
administrative decisions about employees (pay adjustments, promotion, transfers,
demotion and termination).
· Identifying
and plan employees’ growth opportunities (identify strengths or areas for
growth, coach, counselor, develop career).
Automating performance
Appraisal
Automated systems offered by several vendors provide
common formats, integration with compensation, and development and succession
planning. Further to the Mathis & Jackson (2007) Such systems may help a
manager identify which of the company’s thousands of employees are its top
performers, or a breakdown of workers with certain competencies and the best
performers among them (Mathis & Jackson, 2007).
Modern
Method of Performance Appraisal
Modern Methods
of Performance Appraisals are Assessment center method, human resource
accounting method, behaviorally anchored rating scale (BARS) method, management
by objectives (MBO), psychological appraisal method, 360-degree appraisal
method(Eisalou,2014)
The 360-degree feedback evaluation method is a popular
performance appraisal method that involves evaluation input from multiple
levels within the firm as well as external sources. (Antonioni, 1998).
Benefits of a Successful
Evaluation System.
· Helps
taking stocks of an employee’s overall performance.
· Enables
employee to pinpoint strength and spot weakness.
· Provides
an opportunity to motivate employee and encourage for superior performance.
· Let’s
determine any need for further training.
· Helps
setting up goals for future superior performance.
Source - (Islam, R &
Rasad, S 2006)
Employee Evaluation -Practical
scenario in Banking Industry
I work for one of the leading Bank and during the
whole year commitment and sacrifices will be tested from the performance appraisal.
After the appraisal complete, superiors’/Department heads/Branch Managers need
to communicate results in order to finalize their salary increments. This
should be discussed with the employees in personally and employee has an
opportunity to discuss their thought and expectation. This is one-to-one
interview and emotional experience for the Branch Manager/superior and the
employee because he/she must explain the employee targets and expectations from
them for the benefit of the organization.
A major concern
for superiors/Branch Managers are how to emphasize the positive aspects of the
employee’s performance while discussing ways to make needed improvements. If
the interview is handled poorly, the employee may feel uncomfortable and dislike,
which lead to conflict in future working relationships of the organization.
Employees usually approach an appraisal interview with
a positive feedback. This is an important discussion to employee’s future
success of the job. Wise versa they want to know how their superiors/ Branch Managers
feel about their performance.
Depending the
final results of the performance appraisal that means employee should accept
the final grading and sign out the appraisal. After that performance appraisal
will review by the HR department and finalize the grading. For that point
salary increment will effect and this will be a benefit to the promotions and
future career of the employees. This is how the appraisal process of my
organization.
References
· Armstrong, M., Taylor, S.
(2014). Armstrong’s Handbook of Human Resource Management Practice, 13th Edition,
London: Kogan Page Ltd.
· Golec,
A & Kahya, E 2007, A fuzzy model for competency-based employee evaluation
and selection, Computers & industrial engineering.
· Islam,
R & Rasad, S 2006, Employee Performance Evaluation, Asia Pacific Management
Review.
·
Mathis, R & Jackson, H 2007, Human
Resource Management, 12th edition, SouthWestern College Publications.
·
Muhammad Rouhi Eisalou(2014) Human
Resource 360-Degree Feedback Performance Appraisal System.
· Waldman,
D.A., L.E. Atwater, and D. Antonioni, has 360-degree feedback gone amok?
Academy of Management Executive, 1998. 12: p. 86–94.
Agree with your points lakshan, employee Performance evaluation is the evaluation of employee’s performance in which various factors like the results of the project employees have worked(Wu B. 2005).also the ability to coordinate with co-workers, willingness to take responsibility, willingness to learn & update knowledge is considered.
ReplyDeleteHi Dineth, thank you for the comment, it is the process of identifying, evaluating and developing the job performance of the employee in the organization, so that organizational goals and objectives are effectively achieved while, at the same time, benefiting employees in terms of recognition, receiving feedback and offering career guidance (Islam, R & Rasad, S 2006).
DeleteAgreed. Performance appraisal systems serve a variety of functions of central importance to employees. Appraisal techniques practiced today are not without problems, though. Managers should keep abreast of recent developments in compensation and reward systems so they can modify existing systems when more appropriate alternatives become available.
ReplyDeleteHi Ijaz, thank you for the valuable comments and an employee evaluation is the critical link between organizational strategies and results However, developing, maintaining, and improving an employee evaluation system is a complex task, given the different alternative approaches that can be adopted, the linkage with other business functions, and the subjectivity of every evaluation process (Grigoroudis, E & Zopounidis, C 2010).
DeleteAgree with you Lakshan. In addition to your points, Performance evaluation systems can be used to boost motivation (Chen and Eldridge, 2010; Appelbaum et al., 2011). When performed correctly, performance appraisal can have a tremendous impact on employee motivation (Tuytens & Devos, 2012). When done without clear goals, performance appraisal can lead to employee unhappiness and, as a result, a drop in productivity and dedication ((Maley, 2013).
ReplyDeleteHi Janakan, agreed and thank you. Baruch and Peiperl (2000) identified career management practices. Performance appraisal as a basis for career planning.
DeleteYes, Lakshitha. Also, performance evaluations, which allow employers to assess their employees' contributions to the company, are critical to the development of a strong work team (Capko, 2003).
ReplyDeleteHi Isuru, thanks for the valuable comments, feedback may encourage and enable self-development, and thus will be instrumental in the organization as a whole (Yehuda Baruch, 1996).
DeleteYes Lakshan. Performance appraisal is one of the most crucial procedures in an organization. Performance appraisal not only assists in evaluating the promotion and salary of workers, but also it helps to gauge their strengths, skills and shortcomings. Further, to ensure that each worker is given an unbiased opportunity to grow, companies rely on performance appraisal methods (Eisalou, 2014).
ReplyDeleteHi Dileep, thank you for the comments, according to Yehuda Baruch (1996), Performance Appraisal systems are used for two main purposes,
DeleteTo serve a variety of management functions such as decision-making about promotions, training needs, salaries, etc.
To enhance developmental processes of employees or as an evaluation instrument (Cleveland, Murphy, Williams, 1989).
Agreed with you Lakshan , Employee evaluation should be in correct methodology in order to engage the employees with the organization.In addition performance appraisal can be used as a tool to enhance the motivation of employees (Chen & Eldridge,2010)
ReplyDeleteHi Manoj, thank you for the comments Further the presence at work, and the cooperativeness since performance evaluation focuses on how much the employees contribute to the organization (Mathis and Jackson, 2007).
DeleteWell said Lakshan. Regular employee evaluation helps remind workers what their managers expect in the workplace. They provide employers with information to use when making employment decision ( Susan M,2019).
ReplyDeleteHi Upeksha, thank you for the comments, this contrasts with that used in conventional performance appraisal systems, which were usually built around an annual event, the formal review, which tended to dwell on the past (Armstrong M.2006).
DeleteHi Lakshan, Agree with you. further performance review can be a measure of evaluating the employees through an appraisal method for a selected for a periodical time frame by the management of the organization (Obisi, 2011),and it is important to identify the job performance of the selected employee, where is will in line with the organizational performance and the growth (Kirovska and Qoku, 2014).
ReplyDeleteHi, thank you for the valuable comments and according to Armstrong M (2006), the Performance appraisal has been discredited because too often it has been operated as a top-down and largely organizational system owned by the HR department rather than by line managers.
Delete