Performance Management and Appraisal

Armstrong, (2009) performance management defined as a systematic way of improving the performance of individuals and teams in the Company to improve the overall performance of the Company. Performance management is the foundation for employee performance and engagement. It is a developmental tool used for all round development of the employee and the organization.  The process includes setting clear and specific expectations and providing specific and ongoing feedback both informal and formal.

According to the Dessler,(2013) Performance appraisal means evaluating an employee’s current and or past performance based on a performance standard of an employee. By some estimates, more than one-third of U.S. companies are doing just the traditional appraisal process. Early adopters in the industries like Gap, Lear, Oppenheimer Funds and even General Electric, the longtime role model for traditional appraisals. As you might expect, technology companies such as Adobe, Juniper Systems, Dell, Microsoft, and IBM have led the way. They are using modern technics and systems to do the performance appraisals. (Capelli & Tavis, 2016)

Trending Performance Appraisal Methods

1, Management by Objectives

It means management by objectives and the performance is rated against the achievement of objectives stated by the management. In MAS Holdings it is using a system named Talent2O for appraisals of the Executive and above categories. Talent2o process goes as under below main categories.

         Establish goals and desired outcomes for each subordinate

·         Setting performance standards

·         Comparison of actual goals with goals attained by the employee

·         Establish new goals and new strategies for goals not achieved in previous year.

(Kane, 2017)

2, 360-Degree Feedback

           

            It is a technique which is systematic collection of performance data on an individual group, derived from a number of stakeholders like immediate supervisors, team members, customers, peers, and self. 360-degree appraisals are used to measure inter-personal skills, customer satisfaction and team building skills. In Nestleuses 360 degree method for their appraisals. (Anon., 2016)

3, Psychological Appraisals

            These appraisals are more directed to assess employee’s potential for future performance. It is done in the form of in-depth interviews, psychological tests, and discussion with supervisors and review of other evaluations.

Difference between Traditional and Modern Appraisals methods

Categories	Traditional Appraisals	Modern, Systems Appraisals
Guiding Values	Individualistic, Control oriented, Documentary	Systematic, Developmental, Problem solving
Leadership Styles	Directional, Evaluative	Facilitative, Coaching
Frequency	Occasional	Frequent
Formalities	High	Low
Rewards	Individualistic	Grouped, Organizational

(Kane, 2017)

References

Armstrong M., (2009), A hand book of Human Resource Management practice, 10th Ed., Kogan page, London.

Anon., (2016). Performance appraisal system of nestle. [Online]
Available at: https://www.coursehero.com/file/17697240/Performance-appraisal-system-of-nestle/
[Accessed 05.07.2018at 11.13pm].

Capelli, P. & Tavis, A., (2016). The Performance Management Revolution. [Online]
Available at: https://hbr.org/2016/10/the-performance-management-revolution
[Accessed 05.07.2018 at 11.36 pm].

Dessler P., (2013), Human Resource Management, 13th Ed., Pearson Education, New Jersey.

Kane, P., (2017). Performance Appraisal Methods. [Online]
Available at: https://corehr.wordpress.com/performance-management/performance-appraisal-methods/
[Accessed 05.07.2018 at 10.38pm].