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Nature of Performance Appraisal - Analysis

Keywords: pa system benefit

While performance appraisal systems (PAs) are great motivators of employees, they can also assist organisations in the achievement of their objectives. Relating to Wayne F. Cascio people are "the most vital of all resources, in work adjustments" (Cascio 2010). To be able to optimise organisational outputs it, therefore, will go without saying that organisations should try to maximise worker efficiency. In taking care of employees, it is important for organisations to keep their workers happy to increase each employee's outputs. Various studies show correlations between employee efficiency and job satisfaction, work engagement and intent to quit (Find a source). As a result, organisations should get worried with the management of the 3 factors, which are determined by employee behaviour towards their work and can affect employee inputs, that will immediately impact organisational efficiency.

In the article Performance Appraisals Effect on Attitudinal Benefits and Organisational Performance, Ahmed et al asserts that annual performance evaluations are typically one of the most accepted functions for staff management (Ahmed et al 2010). Therefore, through the management of employees, performance appraisal systems would play a key role in handling job satisfaction, work engagement and intent to quit. Given the causal interactions between employee attitudes, their professional performance and the grade of their outputs, this project strives to analyse the relationships between the performance appraisal and work proposal, job satisfaction and the intention to give up.

Using the Effective Performance Appraisals Systems Questionnaire, a 15 person review is conducted, which finally indicates positive human relationships between the favourable perceptions of the performance appraisal system, job satisfaction and work proposal. A negative marriage is, however, found between employee impressions of the performance appraisal system and purpose to give up.


Performance Appraisal

According to its most accepted definition, performance appraisal "is the process of identifying, observing, measuring, and growing real human performance in organizations" (Carroll and Schneir, 1982). This technique is essential to human source of information management (HRM) in that it offers a platform for performance evaluation up against the organisation's strategy, and when properly implemented, stimulates job development and self-assessment (Erdogaan 2002). While PA systems expose employee outputs to the subjective assessments of their superiors, peers and subordinates (Jackson and Schuler 2003), it often sorts the basis of organisational reward and punitive systems (Cardy and Dobbins 2011).

Though performance appraisal systems provide as a functional evaluation tool, also, they are critical in influencing work environment end individuals such as work proposal, job satisfaction and objective to quit.

Work Engagement

Work proposal relates right to the amount to which an individual personally identifies using their work obligations (Khan 1990), spending emotion and personal resources in the execution of work tasks (High et al. 2010). Therefore, work engagement identifies the professional request of various levels of self-investment ranging from the physical to the mental and cognitive (Affluent et al 2010). Macey and Schneider make clear work engagement in basic conditions, as the level to which employees are "involved with, committed to, enthusiastic, and interested in their work" (Macey and Schneider 2008).

Job Satisfaction

Most simply defined, job satisfaction concerns the quantity of pleasure an individual derives off their work (Spector, 1997). Taken a step further, it directly compares an individual's understanding of ideal working conditions with their actual work place and job characteristics (Karani et al). Eventually in identifying their level of job satisfaction, employees evaluate their position, in a company in light of these personal ideals and ideals. (Michael G. Morris et al) -

Intent to Quit

While intent to quit identifies an employee's prefer to actively seek substitute job (Tett and Mayer, 1993), it also pertains to the individual's likelihood to leave the company (Cotton and Tuttle, 1986). According to Herrbach et al, objective to give up is primarily affected by employees' level of job satisfaction, their sense of organisational commitment and the employer's reputation (Herrbach 2004)

Elements or Characteristics of an Effective Performance Appraisal System

While performance appraisal systems serve numerous purposes, its key function is to boost organisational efficiency, by encouraging increased employee efficiency. Therefore, it is important that performance appraisals screen the following characteristics:

Alignment with Organisational Strategy and Goals

In Managing Human Resources, Cascio says that Performance Appraisal standards must be relevant, regarding their relation to both organisational goals and staff goals (Cascio 2010). Guided by the Performance Appraisal, employees should strive to meet focuses on that align with the organisation's strategy, so that both gatherings reap the benefits of its execution. Therefore, in addition to end result focuses on, Performance Appraisals also needs to focus on growing employees through training initiatives, that ought to be aligned with permanent organisational objectives. Additionally, performance requirements should examine outputs predicated on appropriate/inappropriate employee behavior, but should also include a score, which will show the quality of the work performed.

The criteria must be SMART (Specific, Measurable, Attainable, Relevant, Time-bound)

An effective Performance Appraisal system should focus on job requirements, must be based on measurable criteria, and must avoid opinion structured assessments (Noe et al 1994). The system should separate between excellence and poor delivery, and really should award employees properly (Cascio 2010). Furthermore, unattainable performance requirements will serve only to discourage employees. As a result, scores for measuring performance must fall realistically within an employee's reach, should be influenced by timelines, and must be evaluated regularly. Clearly described timelines not only provide structure to the performance appraisal process, but also set up deadlines for the achievements of set in place goals. Should employees fall short of set goals, corrective action must be studied in the new evaluation pattern. Organisations must, therefore, spend money on designing performance standards that may be practically and regularly assessed and applied similarly to all or any employees throughout the company.


The success of all performance appraisal systems hinges directly on staff endorsement and support. According to Cascio, "HR programs must have the support of these who will use them, or real human ingenuity will be used to thwart them" (Cascio 2010). To be able to attain employee buy-in, it is, therefore, critical that organisations include worker and management involvement, and inputs in to the design of any performance appraisal system, . The reliability of an Performance Appraisal also depends heavily on the product quality and integrity of the information used to reach the Performance Appraisal score. Employees should feel that supervisors accurately assessed their performance (Cascio 2010). It really is, therefore, critical that employees view the machine to be fair and representative of their work requirements. It's also critical that employees value the assessments of the evaluators. Employees must believe that assessor assessments are objective and standard in program.

Practical Usability

While Performance Appraisal Systems must give attention to specific job requirements, designers of these systems must place emphases on the usability. To encourage employees to actively use the system, it must be easy to understand and apply (Cascio 2010). In addition, employees must have a clear understanding of the evaluation conditions.

A time-consuming system can deter employees from using it maximally, in so doing compromising the potency of the performance appraisal process. Because of this, it's very important that employees not only understand the targets of the performance appraisal system, but likewise have a firm knowledge of the requirements and the consequences of non-performance.

Two-Way Feedback

Once supervisors have completed worker evaluations, they need to provide employees with clear, meaningful feedback that targets both advantages and weaknesses. Supervisors must then allow employees the possibility to respond to evaluation ratings and touch upon their development goals within the company. It's essential that an genuine, two-way discourse is motivated to prevent the emergence of disgruntled employees.


The first step in implementing an efficient performance appraisal system is to determine the performance analysis requirements that will align to both the employee's job and the organisation's brief and long-term goals. The identified criteria must then be changed into score system that will link specific results to levels of performance (Cascio 2010, p. 338). In order for both employees and assessors to comprehend the assessment process, the company should conduct workout sessions, which should cover both the characteristics of the performance appraisal system as well as the diagnosis process (Cascio 2010, 338). Furthermore, the process must be communicated to the employees and the assessors in writing. Traffic monitoring mechanisms must be placed in spot to warn assessors to inconsistencies in the process and to assist managers with corrective steps should employees fall short of set goals (Cascio 2010, 338). The machine should also allow for an appeals process. This will create a program for disgruntled employees to address their grievances. To lessen the inevitable subjectivity associated with performance appraisals, recent scholars also have suggested the use of the 360 level reviews system (Ahmed et al 2010). This form of appraisal assesses the staff from various perspectives (Top Down, Peer to Peer, Bottom level Up and Consumer) and allows for a more well balanced assessment of the employee's performance.

In implementing an effective performance appraisal system, it's important to concentrate on attaining employee and management endorsement and also to promote a fair and transparent process.

Evaluating the "Effective Performance Appraisal Systems Questionnaire"

A close contrast can be attracted between the conditions analysed partly I of the Effective Performance Appraisal Systems Questionnaire and the key characteristics of a powerful performance appraisal system as outlined by Cascio (Cascio. 2010). Like Cascio, the questionnaire assesses employee satisfaction with the execution of the performance appraisal system according to the following conditions:

whether implications/rewards are reflective of results rating;

whether goals add value to the success of the business enterprise;

whether the evaluation criteria is relevant to the success of the job;

the fairness of allocated evaluations;

the regularity of scores;

whether ratings differentiate between effective and less effective performance;

the simplicity with which the performance appraisal system is administered and applied;

the degree of endorsement received from all get-togethers (assessors and employees);

the level to which decisions are based on scores and are reasonable and relevant;

the performance appraisal's level of congruence with organisational strategy, goals and culture;

the degree to which performance appraisal requirements are specific, measuring, stretching goals;

whether the performance appraisal takes both product and specific performance into account and can take corrective action;

whether employees are assessed annually and corrective measures are used.

The only criterion not pointed out by Cascio is whether the performance appraisal system is the organisation's most important evaluation tool. This question offers great perception into the degree to which an company uses the performance appraisal system as a management tool. A lesser organisational dependence on the performance appraisal system (as a management tool) will weaken the causal romantic relationship between your performance appraisal system and the 3 factors (job satisfaction, work engagement, intent to quit). From the 15 members in the analysis, 8 strongly decided that their organisation's performance appraisal system is the primary assessment device, 4 felt it was slightly true, 1 thought it was neither true nor bogus and 2 relatively disagreed. Based on the respondents, 80% (12/15) of the organisations symbolized in the study, therefore, use the performance appraisal tool as a primary management mechanism. Because of this, the performance appraisal perceptions of the majority of the study's members will affect their levels of job satisfaction, work engagement and their motives to quit.

The questionnaire evaluates the rest of the 13 criteria over a level from 1-5, with ratings of 5 reflecting positively on the potency of the machine and 1 reflecting improperly. Through the calculation of an individual's mean score across the 13 standards, the questionnaire, therefore, provides relatively clear sign associated with an employee's degree of satisfaction with the performance appraisal system.

The questionnaire then is constantly on the assign scores for job satisfaction, work proposal and intent to quit. Mean calculations for these criteria are weighed against mean results for employee enjoyment with the performance appraisal system. Through these evaluations, the relationships between the system and the 3 factors can be examined. [Write a concluding phrase that will summarise your observations above. Have you measure the questionnaire or does yo relate it to the AP system? I'm not clear. ]

Link between your Effectiveness of a Performance Appraisal System and Work Proposal, Job Satisfaction and Motive to Quit - A Literature Review

Basis for Staff Perceptions of Performance Appraisal Systems

Employee perceptions of performance appraisals are generally based on the following factors:


According to Adnan Ahmed, "the success of any PA system will depend on its degree of fairness" (Ahmed 2010). As suggested above, performance appraisal systems are highly reliant on worker and director endorsement, and its success can be greatly affected if employees think bias within the machine (Ahmed 2010).

Effective rewards/result system

The success of your performance appraisal system is also associated with its ability to operate a vehicle results within both an employee's job opportunity and the organisation. Employees must believe the ratings of a performance appraisal system will lead to meaningful decisions and will clearly differentiate between success and ineffectiveness. It is, therefore, critical that employees have confidence in the features of the performance appraisal system.

Focus on development

Employees will respond more favorably to performance appraisal systems that focus on employee development goals; that ought to be aligned with organisational aims. Corresponding to Bard Kuvaas, organisational willingness to invest in worker development can have positive effects on worker perceptions regarding the performance appraisal system. This may in turn favorably affect employee performance and directly affect the success of organisational objectives. Workplace investment in employee development can lead to a feeling of indebtedness, that may result in much better performance (Kuvaas 2006). Organisational investment in employee job development could, inevitably, lead to strong worker commitment to the organisation, which will positively affect work engagement.

Literature Review

In conclusion, the 3 factors mentioned previously strongly affect employee perceptions about performance appraisals. In order for appraisals to favorably have an impact on performance and inspire the work pressure, employees must associate positively to the machine (Kuvaas 2006). Positive staff reactions to the performance appraisal system will therefore contribute positively to staff job satisfaction and work engagement, which will diminish intent to quit (Ahmed et al 2010).

A survey review conducted in Islamabad, Pakistan, assessed research completed by 123 employees from marketing, sales, development and administration backgrounds. Both management and non-management positions were represented in the sample group and the results "indicate [a] significant positive relationship between PA satisfaction and job satisfaction. . . and [suggests] that the worker turnover intentions are significantly and adversely correlated to conception of PA satisfaction" (Ahmed et al 2010). Yet another analysis of 112 studies cited by IM Jawahar facilitates the positive correlation between PA satisfaction and job satisfaction and the negative marriage between PA satisfaction and objective to give up. Jawahar does clarify, however, that while individuals desire performance opinions, they are more likely to respond positively to favourable opinions. Positive performance assessments are, therefore, more likely to create a positive employee frame of mind towards performance appraisals than the negative (Jawahar 2006).

Christian, Garza and Slaughter (2011) cite Khan (1990), Macey and Schneider (2008), to provide insight in to the romantic relationship between appraisals and work engagement. While the creators don't make a primary assessment of the marriage, they infer a healthy level of work engagement is inspired by employee values that leadership targets and evaluations are obvious and fair in evaluating their performance. Although a direct relationship is not mentioned, the requirements of an effective performance appraisal system include fairness and the clear communication of SMART targets. Therefore, it can be concluded that a performance appraisal system that effectively can be applied all these criteria, would have a positive effect on work engagement. As a result, a positive relationship exists between your effective implementation of performance appraisal systems and levels of work proposal prevalent in a organisation.

Additionally, predicated on assertions made by Gersick, Bartunek & Dutton, 2000; Kahn1990, Religious, Garza and Slaughter(2011) make an argument for the positive effect of organisational support on staff commitment with their work. Matching to Christian et al, "Social support (the magnitude to which a job provides opportunities for assistance and advice from supervisors or co-workers), motivate[s] by creating meaningfulness (Gersick, Bartunek, & Dutton, 2000; Kahn, 1990), resilience, and security (Ryan & Deci, 2001). Thus, [it's] expected that proposal would be positively related to social support. " (Christian et al 2011)

In addition to job satisfaction, work proposal and intent to quit, the execution of performance appraisal systems also influence other results. Two others that this article hopes to address are organisational determination and role ambiguity. Work commitment is extensively tackled, which is defined as the dedication to job responsibilities, rather than the commitment to a workplace. The management of performance appraisal can, however, affect the level of commitment an employee feels to a employer. This can further be affected by an organisation's perceived external prestige, which could cancel out the impact of employee's understanding of the performance appraisal system and decrease their desire to quit (Herrbach, Mignonac and Gatignon 2004). Role ambiguity is also an important end result of any performance appraisal system that is improperly structured and not representative of worker job responsibilities. When a worker is unclear about their role, performance will be compromised as well as organisational outputs. As a result, effective structuring, implementation and monitoring of the performance appraisal system is crucial to staff performance and organisational success.

Link between the Effectiveness of any Performance Appraisal System and Work Proposal, Job Satisfaction and Objective to give up - Empirical Look - The Effective Performance Appraisal Systems Questionnaire

To further measure the link between performance appraisal systems and job satisfaction, work proposal and intention to give up, this study uses the Effective Performance Appraisal Systems Questionnaire. Part I of the questionnaire evaluates employee perceptions of the particular level performance and fairness exhibited by their organisation's performance appraisal system. Part II assesses worker levels of job satisfaction, part III their goal to give up and part IV their degree of work engagement. While using questionnaire observed above, this research examined 15 individuals between the age groups of 30 and 59. From the test, 7 employees were male and 8 feminine, with the group evenly split between dark and white, with only one representative from the Indian racial group. Employees within this test of 15 have worked because of their organisations for schedules ranging from 2-30 years.

When analysing developments within this groups responses, the next observations were made:

Performance appraisal and job satisfaction

The general craze exhibits that positive perceptions about the performance appraisal system are in conjunction with greater job satisfaction. The questionnaire rates contentedness with the PA system over a range from 1-5, with 1 reflecting unhappiness and 5 indicating delight. Though not absolutely all positive sentiments about the performance appraisal system are linked with high levels of job satisfaction, the graph below demonstrates an upward sloping curve, which suggests that the more positive an employee's belief of the PA system, the higher the amount of job satisfaction. Exceptions are however seen at point A and B, where one of the employees with the best degree of job satisfaction displays the second lowest degree of joy with the PA system and the staff with the cheapest level of job satisfaction displays a degree of happiness with the PA system that's only somewhat substandard.


In addition to measuring personal worker satisfaction with the appraisal system, the questionnaire also interrogates the employee about their fellow workers' perception (organisational satisfaction) of the machine. Though organisational satisfaction is normally lower than personal satisfaction, the same upward sloping style prevails as can be seen in graph 2 below:

Performance appraisal and work engagement

According to Macey and Schneider, work proposal identifies the degree to which folks are interested in their work (Macey and Schneider 2008). It, therefore, seems reasonable that high degrees of job satisfaction would be paired with a strong sense of work engagement. Given the aforementioned indicated relationship between performance appraisals and job satisfaction, maybe it's deduced that positive sentiments about an organisation's performance appraisals, could donate to a strong degree of work engagement among its employees. The results of the Effective Performance Appraisal Systems Questionnaire illustrate a positive marriage between employee thoughts about the PA system and work engagement. Graph 3 shows a positive slope, indicating that generally employees who are content with their performance appraisal have a larger commitment with their jobs. Not surprisingly pattern, there are exceptions, as mentioned by point A, where the employee with the highest degree of work proposal is minimal satisfied with the PA system and point B, where in fact the employee with the cheapest level work engagement shows slightly below average contentedness with the system. Irrespective of this exception, a definite positive relationship is out there between delight with the performance appraisal system and work engagement, as confirmed by graph 3 below:


Performance Appraisal and Objective to Quit

The interconnection between job satisfaction and intent to quit seems obvious, since someone who's content with their work is less likely to actively seek choice employment. Predicated on the positive marriage that exists between perceptions about the performance appraisal and job satisfaction, it could, therefore, be figured a negative romantic relationship prevails between performance appraisal perceptions and intent to quit. The visual depiction of the fifteen person study shows the negative relationship between performance appraisal perceptions and intent to quit. Apart from two respondents, employees who had been satisfied with the performance appraisal system allocated a low rating to their intention to quit.


This assignment deliberately neglects the discussion of the effect of positive versus negative opinions on work attitudes. This omission is dependant on the assumption that most employees can differentiate between negative responses/constructive criticism and an inadequate unfair appraisal system. Instead this assignment argues that staff perceptions of performance appraisal systems depends on the conditions posted in section 3, somewhat than on subjective assessments of whether their personal evaluations covered positive or negative reviews.

Therefore, the system's merits will have an impact on job satisfaction, work proposal and intention to quit. In addition to the results from the Effective Performance Appraisal Systems Questionnaire, the quarrels made in this article also rely on various literature sources and results from studies cited by Ahmed et al and IM Jawahar. All sources point unanimously to a good marriage between performance appraisal perceptions, job satisfaction and work engagement and to a poor marriage between performance appraisal perceptions and intent to quit. This finding shows that favourable staff perceptions of performance appraisal systems lead to high degrees of job satisfaction and work proposal, and also to low levels of intent to give up. Therefore, employees who believe that the appraisal system to be good and effective, will be more comfortable at work, will commit more of themselves to their work and will be less likely to resign their jobs to seek substitute employment.

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