EFFECTS OF PERFORMANCE APPRAISAL ON EMPLOYEES PERFORMANCE IN GOVERNMENT INSTITUTIONS
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EFFECTS OF PERFORMANCE APPRAISAL ON EMPLOYEES PERFORMANCE IN GOVERNMENT INSTITUTIONS
Chapter one
INTRODUCTION
1.1 Background for the study
One of the primary priorities of any organisation is achieving peak performance. A variety of factors influence employee performance, including managerial standards, knowledge, and skill.
Commitment and performance appraisals affect employee performance (Lillian & Sitati 2011).
Performance evaluation is defined as a systematic procedure that assists in evaluating previous and present employee performance and identifying employees’ potential for future growth and progression within the organization’s career ladder (Igbojekwe and Ugo-Okoro, 2015).
Byers and Rue (2000) define Performance Appraisal (PA) as the process of determining and conveying to employees how they are performing on the job, with the goal of developing an improvement plan.
These definitions demonstrate that, if a performance appraisal system (PAS) is successfully implemented in an organisation, employees will be able to understand how well they are performing and what is expected of them in the future in terms of effort and task direction via an established plan for performance improvement. In general, performance appraisal is a beneficial technique for understanding and analysing employee ability and potential.
The history of performance appraisal is quite brief. Taylor’s pioneering time and motion research in the early twentieth century laid the groundwork for its development.
The practice of performance appraisal began primarily in the 1940s, and with the help of this system, merit rating was employed for the first time near the end of WWII to justify an employee’s compensation (Lillian & Sitati, 2011).
During the 1950s, there was a surge of interest in performance appraisal for technical, professional, and managerial people. It was recognised that systematic evaluation was an essential component of well-designed development programmes.
Even though the authors of this paper are unable to determine when the performance appraisal system was implemented in Ethiopian higher education, it was common practice for every University employee in Ethiopia to receive a written performance appraisal each semester, which provides feedback on performance and justifies personnel decisions such as promotion and compensation.
According to Danielle (1998), performance appraisal system metrics often contain both behaviours (what an employee performs) and outcomes. To achieve the goal of performance appraisal, organisations should properly design and implement appraisal systems. According to Gomez-Mejia (2001), numerous phases are taken during the appraisal process.
The first step in the performance appraisal process is to determine what is to be measured. This technique appears to be straightforward at first appearance; yet, in fact, it can be rather complicated.
If an important dimension is overlooked, employee morale is likely to decrease because employees who perform well in that dimension will not be recognised or rewarded. He goes on to add that if an irrelevant or small factor is included, employees may view the entire appraisal process as useless.
The second step in the performance appraisal process is to assess employees’ performance. This procedure entails assigning a number to indicate an employee’s performance based on the defined traits or dimensions.
The third step in performance appraisal is to manage performance. More than formal reporting and annual evaluations are required for effective human performance management in organisations.
A comprehensive appraisal procedure includes both informal daily interaction between managers and employees and formal face-to-face interviews (Gomez-Mejia, 2001).
The most recent developments in performance appraisal (PA) systems have tended to shift away from a focus on control and maintenance and towards a focus on incentive and development (Kimiz, 2005). As a result, a favourable PA would improve staff attitudes, behaviours, and organisational efficiency.
For example, higher employee performance and productivity are obtained from the PA’s ability to reflect, measure, and evaluate an individual employee’s behaviour. Over time, these beneficial results are influenced by employees’ perceptions of overall PA efficacy.
According to Coens and Jenkins (2000), performance appraisal is a mandated process in which a group of employees’ work performance and personal traits over a specified period of time are individually judged, rated, and described by the group’s rater, and the results of the evaluation are retained by the organisation for future reference.
Performance appraisal is typically a formal procedure that is an important component of an organization’s human resource management processes.
The researchers were also inspired by the lack of attention paid to the practice of performance appraisal systems in Ethiopian higher education institutions, as well as the scarcity of empirical studies on the subject.
The current study attempted to assess the practices of the performance appraisal process, specifically how performance standards were established, performance expectations were communicated to employees
how actual performance was measured, actual performance with standards was compared, how the appraisal result was discussed with the employee, and how corrective actions (decision making) were indicated.
1.2 Statement of the Problem
Managers in all types of organisations confront the same challenge: how to get the most performance out of their people. Performance evaluation consequently appears to be unavoidable. In the absence of a well-structured appraisal system, people will judge the work performance of others, even subordinates, instinctively, informally, and arbitrary.
Without a structured appraisal system, humans have a natural tendency to judge, which can lead to major motivational, ethical, and legal issues at work.
Without a systematic appraisal system, there is no hope of guaranteeing that decisions made are legitimate, fair, defensible, and correct. In light of this, the current study aims to evaluate the impact of performance appraisal on employee performance.
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