Management Essay on Staff Appraisal Schemes

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.