Conducting performance appraisal to employees, most especially subordinate does not just provide career development for employees but more importantly an aspect where it helps achieve company’s main goal and objectives. Performance appraisals in general may have three main reasons why it is very important, first, it provides monitoring for employees’ performance, particularly the quality and quantity of work they have delivered for the company.
The feedback that they will get from their customers, managers and even co-employees can be measured and this can be taken from a well documented reports. Like take for instance for a support person in a company. Monitoring the number of tickets handled in terms of closed, resolved and open tickets are just some of the monitoring reports that can be measured how the person do his job for the company. Or another measurement or monitoring could be the turn around time the person works on a ticket, how long does it take for him or her to resolve the problem for the customer.
The second reason is to increase the morale of the employees, it helps employees think that the company is looking at their work and they would feel the trust and confidence on them. It could create a very healthy environment in the workplace because workers can see how they are being considered by the company that is also why in a typical performance appraisal activities; there are merit, recognition and even cash incentives that are being given to those employees that perform above expectation to their jobs.
Last and definitely not the least reason why performance appraisal is important are in order for the company to achieve its main goal and objective. In this last reason, most company these days considers employees as the most important resource in an organization, the more effective they do work in the company the more beneficial they are for the business and that obviously would also reflect in the financial stability of the company as a whole. (Lawrence, P. , 2004).
Again, it is said that this aspect of performance appraisal is both should come from managers and employees perspective in order to come up with a very effective performance appraisal evaluation for employees, particularly for subordinates. This is actually what happened for the company Starbucks. Starbucks which has been one of the most successful global company today, has establish a well effective approach and these are through what the company called as “self assessment” process that even these company has encountered difficulty of applying it.
This approach is that the employee themselves would evaluate themselves and then later on the manager will also re-evaluate them and the result will be taken from there. One positive outcome of this one is that it helps employees to practice honesty and trust not for others but more importantly to themselves. On the other hand the drawback of this approach is becoming bias to its personal evaluation which is definitely hard for managers to counteract. Another positive side of this one is that managers can focus more on improving the operation instead of performing the process extendedly.
While on the other hand the negative side of it is that, there are some employees that would still not objectively appraised themselves and instead managers, would still allocate more time discussing it to employees due to not so convincing results that some employees reported. (Jones, M. & Russell, R. , n. d. ). In terms of legal aspects, the employee appraisal and evaluation process may be subject to the Federal Uniform Employee Selection Guidelines, 29 CFR Part 1607, specifically Sections 2(B)-(C), and 4(C,)(D) and (E).
These are some of the important guidelines that it covers: Develop an Appraisal Form that Relates Specifically (or Can Be Adapted to Relate Specifically) to the Employee's Job, Train the Evaluators, Develop a rating Scale, Safeguard against Inaccuracy, Ensure against Bias of the Evaluator, Provide for Cross-Checks on the Evaluators, Provide for the Employee's Agreement that the Job Duties on Which He Has Been Rated Constitute an Accurate and Complete List of His Major Job Duties, Require Employees to Sign Their Evaluations after Giving Them an Opportunity to Review the Evaluation and to Comment in Writing, Provide for Appeals on Grievances, Timing of Evaluations, Review Performance Evaluations for Adverse Impact and Follow Whatever System or Procedure Has Been Established to the Letter, and Carefully Refrain from Any Actions or Statements in Performance Evaluations that Connote a Guarantee of Continued Employment.
In these lists of guidelines, its main goal here is to provide transparency and accuracy in the actual performance appraisal activity for subordinates, that these should be well studied before it can be applied, where most managers do not think of its impact before even deciding of applying the process itself. (Baskin, M. , 2002).
Baskin, M. (2002). Legal Guidelines for Associations for Conducting Employee Evaluations and Performance Appraisals. Asae & the Center. Retrieved December 22, 2008, from http://www. asaecenter. org/PublicationsResources/whitepaperdetail. cfm? ItemNumber=12208 Jones, M. & Russell, R. (n. d. ). Aligning Performance Appraisals with TQM: An Empirical Investigation. Small Business Advancement National Center. Retrieved December 21,