The Importance Of Performance Appraisal

797 Words 4 Pages
Organizations must have an effective performance appraisal system in place in order to succeed in their goals and objectives. They must be able to incorporate the performance appraisal process to the HR management process. Even though performance appraisals are at times biased because managers do not take the appropriate steps in conducting them properly, they are a critical element in assessing employees’ work performance that brings strategic advantages to meeting an organizations goals and objectives.

First, Performance appraisals are a critical element in assessing employees’ work performance bringing strategic advantages to meeting an organizations mission, goals and objectives. According to the U.S. Office of Personnel Management (OPM),
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Sartore (2006), stated this as “performance evaluations have been identified as fundamental for the success of organizations and employees; they are also extremely susceptible to bias” (p. 539). Youssef (2012) highlighted some of the types of biases that have been known to affect appraisals such as stereotyping, halo effect, availability, self-fulfilling prophecies, and fundamental attribution error. Stereotyping can occur if the rated employee is not of the same group as the rater or person conducting the appraisal. The halo effect may cause judgment errors because the employee was observed in minimal situations that could not be measured. The availability of major factors causes raters to focus on minor re-occurring factors. The self-fulfilling prophecies or expectations can possibly interfere with adequately evaluation an employee by causing the rater to see what he expects to see. The fundamental attribution error can cause a rater to blame others and fail to give credit when credit is deserved. Organizations can tailor a performance evaluation system that can eliminate or reduce these types of biases by conducting appropriate training with …show more content…
The appraisal can help assess the knowledge, skills and attributes of an employee so that organizations can determine where employees would best serve the organization. Mishra (2013) explains that “communicating to employees about their performance is known to have a wide spectrum of organizational benefits, such as enhancing employee productivity and organizational commitment” (p. 31). Organizations can pull valuable information from employees using the performance appraisal system to determine an employee’s personality traits, productivity, and the ability to adapt to various working conditions as well as understand the employee’s strengths or flaws. All of these aspects of an employee will help the organizations strategic objectives. Organizations can use this information from performance appraisals to conduct succession planning as well, another strategic objective of an

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