Security Management course: Unit 8: Performance Appraisal

What are its benefits?

Gives worker feedback on performance
helps make certain there's consistency between a worker's behaviors and organization mission goals and objectives. Particularly important for new workers , so they can tell how they're doing and how others perceive them --can help workers become more effective, and motivated. Should concentrate on results, not on behaviors.
A tool for organizational socializing and control
helps workers understand the company's goals and expectations, culture, etc. -- to do well, you have to understand corporate objectives, help to achieve them (and can be used to discipline workers as well).
A tool for compensation system
If a company links pay to performance, then it must establish criteria to justify raises, based on employee performance. Can also be used to determine merit pay.
Another contributor to organizational development,
because it can help workers "learn what activities are important, relevant and peripheral, and to adjust their actions as necessary." Can also involve setting goals, and helping workers to refine skills, which in turn makes them more motivated and satisfied.

Performance Appraisal's drawbacks

some analysts, such as TQM guru Edwards Deming, feel appraisals encourage short-term performance, "discourage risk taking, build fear, undermine teamwork and pit people against each other for the same rewards."
Others say they involve factors that don't directly relate to performance, are ambiguous, and, especially if the company uses a team approach, may be difficult to assess in individuals.
can create adversarial relationships between workers and supervisors
Depends heavily on supervisor's ability to talk with workers about their performance, and most supervisors lack this ability.
performance is hard to define and evaluate

Designing an appraisal system

Factors to consider include:

"Organizational goals and objectives
The responsibilities of the worker in the context of the organization's mission and goals.
The individual's social needs in the workplace and how they combine with performance
The psychological needs of the worker
Skills needed in performance of the job
Other needs of the employee
Individual versus team performance evaluations
Organizational culture and/or philosophy

Above all, it must be reliable, valid, and be standardized. Why?

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