According scale of unsatisfactory to outstanding performance and

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Last updated: May 19, 2019

According to Angelo S. DeNisi and Robert D. Pritchard (2006)Studieshave shown .

that”Pperformanceappraisal is a discrete, formal, organizationally sanctioned event, usually notoccurring more frequently than once or twice a year”PerformanceAppraisal is defined as an assessment of employees by the manager/supervisor, in which he/she evaluatesthe overall contribution made by the employee to the organization. It is asystematic and logical review, conducted by the organization annually to judgehis/her potential in performing a task. It helps to analyze the skills andabilities of an employee for their future growth that increases theproductivity of employees. Also, ithelps to identify the employee who performs their task well and those whoare not.Mostorganizations today have placed great emphasis on ways of improvingperformance outcome from its employees which has led to many research onorganizational productivity and performance appraisal mechanisms.

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As pointedout by Armstrong (2005), most studies on improving organizational productivityhave over the years focused on ways of increasing organizational productivitythrough performance management, thus, performance appraisal is a humanresources activity that has existed for several decades, ranging from annualoverview and appraisal of management performance, as well as individualemployee performance, the practice has always taken the dimension of appraisingperformances by either the organizations management or a restricted supervisorygroup without a specific strategic approach. The main objective of theperformance appraisal system is to exercise control over the activities of theemployees through disciplinary actions and management of rewards and promotions.The supervisors/managers areexpected to rate their employees on certain traits ranging between a scale ofunsatisfactory to outstanding performance and these ratings are susceptible tovarious errors like central tendency, bias, halo effect, etc. Inthe same vein Armstrong (2005) pointed out that over the years mostorganizations have operated what basically is called performance appraisal, butthe concept of performance management is a recent development in the world ofmanagement, unlike the performance appraisal which is not strategically focused,the new concept of performance management is futuristic and strategicallyoriented. Performance management is used in most organizations particularly onindividual employees with the primary aim of utilizing on their currentperformance and leveraging on that to boost their future potentials.  In addition, Armstrong (2005) opined that theconcept of performance management was not utilized until 1970, however sincethe utilization of the concept in 1970 it has been constantly used in mostpublic and private firms to set standards of performance among managers andindividual employees as well as establish criteria for assessment of desiredresult, outcome or conformance to organizational standards (Boland and Fowler,2000). Boland stressed that “performance management is aimed at establishmentof set of activities that ensures that organizational aims and objectives,visions, management patterns,managementsincentives and rewards, performance framework, team goals, employeesneeds etc.are efficiently and effectively achieved.

, andthe fact that Pperformancemanagement is a managerial activity which  has existed for over several decades, althoughperformance management is a recent concept mostly to Nigerian government andministries, it involvesregular employee’s performance appraisal” (Armstrong and Baron, 2005). Fowler(2000) in his own view posited that the concept however, is not limited toemployees only it also encompasses an overall management and organizationalappraisal tonset target objectives which the organization intends to achieve per time.Performance management is beneficial to organizations in varied ways as ithelps to boost the morale of employees to  knowingfull well that they are reachachieveingthe set target of their organization, it also provides an avenue fororganizationsto appraise its performance and ethics to make provision for improvements forimproved performance (Armstrong and Baron, 2005).

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