The Use and Value of Performance Evaluations Essay
Performance evaluation mechanisms in organizations have become an integral part of modern organizations. This has particularly been prompted by the rapid change and developments in organizational knowledge management (Ali, Mahdi & Malihe, 2012). Management experts have provided diverse models for performance evaluation in an attempt to provide a range of choice for organizations depending on their type, structure, manpower as well as mission. Performance appraisal is an important factor towards raising employee motivation. The use of performance appraisal in organizations aims at determining the efficiency and effectiveness of employees. The need for performance appraisal is brought about by the differences in the employee attitudes towards work. The eventual outcome of performance evaluation is improvement in work performance, awareness of employee potential, provision of a basis for employee counseling and communication of expectations.
Several appraisal techniques are evaluated by Aggarwal, Sundar and Thakur (2013). An investigation of performance evaluation in Pakistan revealed a significant correlation with employee performance (Jamil & Raja, 2011). Similarly, an investigation of outcomes of performance appraisal and factors that can harm its effectiveness in Pakistani perspective indicated that there is more awareness of performance appraisal outcomes is high than awareness of factors harming it (Ishaq, Iqbal & Zaheer, 2009). This analysis undertakes to evaluate the contexts of the use and value of performance evaluation as discussed by four different scholarly journals. It is therefore evident that performance evaluation is an important undertaking that has received widespread attention across the world.
Analysis and Discussion
The effectiveness of performance appraisal has been undertaken under diverse contexts worldwide. Nevertheless, Ishaq et al. (2009) argue that there has been a general lack of evaluation of the outcomes associated with effective performance appraisal in Pakistani public and private sector. Consequently the three scholars (Ishaq, Iqbal & Zaheer, 2009) undertook a research aimed at studying the outcomes associated with outcomes of effective performance appraisal and the detriments associated with the process performance appraisal in Pakistani organizations. In another study, Aggarwal, Sundar and Thakur (2013) undertook an analysis of various systems of performance evaluation that have been advanced by scholars over time. The review of the various performance evaluation methods is an appreciation of the fact that employees often portray varying attitudes towards work. Nevertheless, the scholars admit that performance appraisal is important in the improvement of work performance among employees (Aggarwal, Sundar and Thakur, 2013).
At the same time, diverse models have been discussed by Ali, Mahdi & Malihe (2012) in their study that addressing the value of performance evaluation in arousing motivation among employees. Therefore, the scholars sought to determine the extent to which performance appraisal arouses intrinsic motivation among employees (Ali, Mahdi & Malihe, 2012). The study was done through descriptive-survey and involved the use of a statistical population of 80 employees drawn from organizations in the Esfahan province. Additionally, the study undertook data collection through the use of questionnaires and analyzed the data using SPSS software. Additionally, Jamil & Raja (2011) argue that the recent past has been characterized with widespread changes in the focus of the HRM functions. Consequently, organizations have sought to widen the scope of HRM functions to include other distinguished areas such as performance evaluation (Jamil & Raja, 2011).
There has been a rapid change in the nature and mechanisms through which diverse organizational activities are being undertaken in modern organizations. This has particularly been prompted by the widespread desire for organizations to have a competitive edge over their competitors. Therefore, the scholars (Jamil & Raja, 2011) made an attempt to explore how performance evaluation influenced employee performance in both private and the public sector in Pakistan. This study is similar to another research undertaken by (Ishaq, Iqbal & Zaheer, 2009). Nevertheless, the two studies were different in that they had different objectives. Indeed, while Ishaq et al. (2009) sought to know the outcomes of effective performance appraisal in Pakistani organizations, Jamil and Raja (2011) were interested in how performance appraisal impacted on the performance of Pakistani employees both in public and private institutions.
Survey research studies are often very commonly used by researchers in obtaining primary data for analysis. This is also the trend in most empirical studies inclined towards quantitative data. Therefore, Ishaq, Iqbal & Zaheer (2009) undertook a survey research design in their study. Managers and operatives in the private and public sector of Pakistani were requested to fill out questionnaires containing purposeful statements covering the objectives of the study. Through their analysis of the various methods used in the performance evaluation, Aggarwal, Sundar and Thakur (2013) argue that the appraisal system employed in an organization is an indication of the level of the quality of the HRM process in an organization. Through their analysis, they argue that a properly designed performance evaluation is essential for assessing not only the performance of an employee but also a source of valuable information to assist in numerous HRM functions. It is also evident that some past techniques of performance evaluation are no longer in use today.
In their attempt to establish the effect of employee performance evaluation on intrinsic motivation, Ali, Mahdi & Malihe (2012) hypothesized that the process of performance appraisal of employees working in the transportation department Esfahan province greatly impacted on their intrinsic motivation. Similarly, Jamil and Raja (2011) applied the null hypothesis that the practices of performance evaluation have positive and significant association with employee performance in both private and public sectors. The findings from the study revealed that beta of 0.227 and significance level at 0.001 meaning that the performance evaluation impacted on the performance of employees in the public sector. This is proof that people often work towards the satisfaction of personal needs and also exhibit desire to have their efforts recognized and weighted appropriately (Jamil and Raja, 2011). Additionally, Ali, Mahdi & Malihe (2012) establish that the process of employee performance evaluation has strong impact on intrinsic motivation at p value of 0.05 and a correlation coefficient of 0.440 between the two variables. Indeed, the correlation coefficient is very close to 0.5 indicating that there is a positively strong effect between performance evaluation and employee performance.
Through their assessment of diverse performance appraisal methods, Aggarwal, Sundar and Thakur (2013) have enumerated several traditional and modern methods that have been practiced by HRM experts over time. They argue that traditional HRM methods of performance evaluation are based on the study of employees’ personal qualities such as judgment, leadership, initiative and knowledge. Some of the traditional methods of performance evaluation methods discussed by these scholars include ranking method, graphic rating scales, critical incident method, and narrative essays. They also discuss modern methods of performance evaluation which are based on the desire to improve traditional approaches. Some of the modern methods include management by objectives, behaviorally anchored rating scale (BARS), human resource accounting, 360 degree, 720 degree and other techniques. Ishaq, Iqbal & Zaheer (2009) undertook their study based on two null hypotheses on the outcome of performance evaluation. The first hypothesis is based on the existence of significant difference between managers and employees while the second hypothesis is based on male and female gender. The scholars found out that there was a strong agreement among employees and managers that performance evaluation has impacts on performance.
From the four scholarly journals discussed, it is evident that performance evaluation is highly viewed by both employees and managers as an important process that improves performance. In particular it has been established that Pakistani managers and employees in the private and public sectors regard performance evaluation as an important factor contributing towards effective performance outcome. Similarly, an analysis of different techniques of performance evaluation has revealed that the modern techniques are an improvement on the traditional techniques. The different techniques are dependent on the size and nature of organizations. Additionally, a study of the impact of performance evaluation on employees of a transportation department in Esfahan province revealed that the evaluation impacted on intrinsic motivation of employees. Furthermore, performance evaluation has been described as an important process that facilitates the recognition of employee performance level. The process should therefore be undertaken in full recognition of the diverse aspects and elements. Therefore, it is a general consensus from the four scholarly journals that performance evaluation is important in employee performance.
Aggarwal, A., Sundar, G. & Thakur, M. (2013). Techniques of Performance Appraisal – A Review. International Journal of Engineering and Advanced Technology, 2(3), 617-622.
Ali, B.S., Mahdi, A. & Malihe, J. (2012). The Effect of Employees’ Performance Appraisal Procedure on their Intrinsic Motivation. International Journal of Academic Research in Business and Social Sciences, 2(12), 161- 169.
Ishaq, M.H., Iqbal, Z.M. & Zaheer, A. (2009). Effectiveness of Performance Appraisal: Its Outcomes and Detriments in Pakistani Organizations. European Journal of Social Sciences, 10(3), 479-486.
Jamil, B. & Raja, N.S. (2011). Impact of Compensation, Performance Evaluation and Promotion Practices on Government Employees Performance VS Private Employees Performance. Interdisciplinary Journal of Contemporary Research in Business, 3(8), 907- 914.
The Use and Value of Performance Evaluations Essay