Performance Appraisal Systems Essay Example | Topics and Well Written Essays - 1500 words

Performance Appraisal Systems - Essay Example Managers apply the most suitable appraisal methods in order to assess and evaluate the performance of employees. Performance management is all about sharing expectations (Mike, 2010). Appraisal systems not only monitor the performance of employees but also play a crucial role in the selection of suitable employees for any specific task. Performance management is a whole working system that begins when a job is defined as needed and ends when an employee leaves the organization (Shahzad, 2010). Two of the most common objectives of appraisal systems include developing and improving the skills of the employees and increasing the productivity of the organization through selecting best employees for high-value tasks. Plessis (2010) asserts, â€Å"The performance appraisal process is something that every business needs to do if they want to improve efficiency†. Performance appraisal plays a vital role in the success of any company or organization because it supports the management in taking various critical decisions. Bacal (1999, p.34) asserts, â€Å"The performance appraisal process involves manager and employee working together to assess the progress that the employee has made towards the goals set in performance planning†. Employee performance appraisal is done once or twice a year (Chandler, 2005). Effective performance appraisal systems improve employee loyalty, morale, and general productivity (Ndunuju, 2009). An appropriate performance appraisal not only m akes the employees aware of their deficiencies but also helps them improve the required skills and knowledge. The four major components included in the performance appraisal system are senior management’s support, a design of the system’s procedures, system implementation, and management training (Grote, 1996, p.189).