Extract from:
WHAT ARE THE MAIN PURPOSES OF STAFF APPRAISAL? HOW CAN STAFF APPRAISAL SCHEMES BE MADE MORE EFFECTIVE?
Treat Different Reviews Separately
Problems can arise when too much is asked of an appraisal
system in that attempts are made to fulfil many different
and often conflicting requirements in one go. E.g. combining
reward and performance reviews. Discussions about pay involves
some degree of negotiation and competition.
This can conflict
with a proper performance review, which requires a supportative
approach to problems. Randell argues that using performance
reviews for the basis of salary and other reward decisions
conflicts with performance appraisal objectives such as improving
current performance, and identifying training and developmental
needs of appraisees.
Despite this, most organisations reject
this proposal of separation for practical reasons; separating
the three would make unreasonable demands on time and resources. Lawler (1981) argues that when appraisal and pay decisions
are linked, employees are motivated to perform more effectively.
The decision to take depends on how important the organisation
considers money as a motivator.
However, managers need to bear in mind that when linking pay
and performance reviews, discussions may become less open
and honest, and other important issues such as identifying
training needs may become overshadowed. Subordinates may deny
shortcomings or consider them unnecessary if they think failings
will impact salary decisions. Problems can also be expected
when linking potential and performance reviews, e.g. personal
likes/dislikes of line managers may effect assessments.
To
summarise, the techniques, procedures, and information required
for the achievement of each of the reviews to a satisfactory
level may not necessarily be the same and different roles
are played by manager and employee in each. It is difficult
to do each well, so it is better to keep them separate (though
information can be shared where relevant).
Organisation Needs
Despite writers suggesting one approach should be used in
preference to another, managers need to bear in mind that
each organisation has its own unique circumstances, its own
objectives and its own history. Any appraisal system should
be designed with a clear set of purposes in mind, which reflect
the needs of the organisation and are flexible enough to meet
the requirements of those involved.
Effective appraisal systems
are those which are organisationally valid and are tailored
to the organisation's unique needs, managerial style
and overall organisational culture. George (1986) suggests
that appraisals need to reflect wider organisation values
in order to be properly integrated into the organisation and
survive. George also states that appraisals can be used to
integrate people into an explicit and purposeful culture.
It would also be difficult to devise one single appraisal
system to serve all management needs since decisions regarding
salary, promotion, etc. vary from individual to individual,
and from department to department, therefore different approaches
are required for each.
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