The Dilemma of Performance Appraisal
Abstract
This paper deals with the dilemma of managing performance using performance appraisal. The authors will evaluate the historical development of appraisals and argue that the critical area of line management development that was been identified as a critical success factor in appraisals has been ignored in the later literature evaluating the effectiveness of performance through appraisals.
This paper will evaluate the aims and methods of appraisal, the difficulties encountered in the appraisal process. It also re-evaluates the lack of theoretical development in appraisal and move from he psychological approaches of analysis toamorecritical realization of approaches before re-evaluating the challenge to remove subjectivity and bias in judgment of appraisal.
13.1Introduction
This paper will define and outline performance management and appraisal. It will start by evaluating what form of performance is evaluated, then develop links to the development of different performance traditions (Psychological tradition, Management by Objectives, Motivation and Development).It will outline the historical development of performance management then evaluate high performance strategies using performance appraisal. It will evaluate the continuing issue of subjectivity and ethical dilemmas regarding measurement and assessment of performance. The paper will then examine how organizations measure performance before evaluation of research on some recent trends in performance appraisal.
This chapter will evaluate the historical development of performance appraisal from management by objectives (MBO) literature before evaluating the debates between linkages between performance management and appraisal. It will outline the development of individual performance before linking to performance management in organizations. The outcomes of techniques to increase organizational commitment, increase job satisfaction will be critically evaluated. It will further examine the transatlantic debates between literature on efficiency and effectiveness in the North American and the United Kingdom) evidence to evaluate the HRM development and contribution of performance appraisal to individual and organizational performance.
13.2 What is Performance Management?
The first is sue to discuss is the difficulty of definition of Performance Management. Armstrong and Barron(1998:8) define performance management as: A strategic and integrated approach to delivering sustained success to organizations by Improving performance of people who work in them by developing the capabilities of teams And individual performance.
13.2.1 Performance Appraisal
Appraisal potentially is a key tool in making the most of an organizationrsquo;s human resources. The use of appraisal is widespread estimated that 80–90%of organizations in the USA and UK were using appraisal and an increase from 69 to 87% of organizations between 1998 and 2004 reported a formal performance management system (Armstrong and Baron, 1998:200).There has been little evidence of the evaluation of the effectiveness of appraisal but more on the development in its use. Between 1998 and 2004 a sample from the Chartered Institute of Personnel and Development (CIPD, 2007) of 562 firms found 506 were using performance appraisal in UK.
What is also vital to emphasize is the rising use of performance appraisal feedback beyond performance for professionals and managers to nearly 95% of workplaces in the 2004 WERS survey (seeTable 13.1).Clearly the use of Appraisals has been the development and extension of appraisals to cover a large proportion of the UK workforce and the coverage of non managerial occupations and the extended use in private and public sectors.
13.2.2 The Purpose of Appraisals
The critical issue is what is the purpose of appraisals and how effective is it ？Researched and used in practice throughout organizations? The purpose of appraisals needs to be clearly identified. Firstly their purpose. Randell (1994) states they are a systematic evaluation of individual performance linked to workplace behaviour and/or specific criteria. Appraisals often take the form of an appraisal interview,usually annual,supported by standardised forms/paperwork.The key objective of appraisal is to provide feedback for performance is provided by the linemanager.The three key questions for quality of feedback:
1. What and how are observations on performance made?
2. Why and how are they discussed?
3. What determines the level of performance in the job?
1 It has been argued by one school of thought that these process cannot be performed effectively unless the line manager of person providing feedback has the interpersonal interviewing skills to provide that feedback to people being appraised. This has been defined as the “Bradford Approach” which places a high priority on appraisal skills development (Randell, 1994). This approach is outlined in Fig. 13.1 which identifies the linkages between involving,developing, rewarding and valuing people at work..
13.2.3 Historical Development of Appraisal
The historical development of performance feedback has developed from a range of approaches.Formal observation of individual work performance was reported in Robert Owensrsquo;s Scottish factory inNew Lanarkin the early 1800s (Cole, 1925). Owen hung over machines a piece of coloured wood over machines to indicate the Super intendentrsquo;s assessment of the previous dayrsquo;s conduct (white forexcellent, yellow, blue and then black for poor performance).The twentieth centuryled to F.W. Taylor and his measured performance and the scientific management movement (Taylor, 1964). The 1930sTraits Approaches identified personality and performance and used feedback using graphic rating scales, a mixed standard of performance scales noting behaviour in likert sca
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