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Restructuring Appraisal Systems Essay

6342 words - 26 pages


Table of Contents

Abstract 3
Introduction 3
I. PA Critique 4
Subjectivity and bias 5
Difficulty in measurement 5
Uncorrelated Costs vs Benefit: 6
Feedback Gone Awry 6
Non-clarity of Purpose 6
The Problem with Hierarchy 7
Pitfalls of Performance ...view middle of the document...

The impact of employee participation in the design, implementation and improvement of PMS was expounded on. The various challenges and issues faced by organizations in the implementation of PMS through employee involvement were discussed. It was found that many problems inherent in PA stem from lack of alignment to organizational strategy and lack of cohesive corporate collectivism. Re-engineering PA so that it becomes relevant to company strategy through PMS and strategic human capital management (SHCM), it can become a powerful tool for driving and improving company objectives. There is no one set way of adopting PMS, but by examining the external and internal contexts in which it must foster commitment and participation from employees, we gain insight into how it might continuously bring benefit to organizations and integrate itself into performance-directed corporate culture.


Today’s organizations know that competent, motivated employees are their most important asset (Heizer & Render, [1996] 2006). The performance and competitiveness of a firm is tied intrinsically with the performance of its human capital (Bujang & Rusli, 2013). Talent is recognized as an invaluable asset which is pursued across boundaries in the increasingly global arena (Deloitte, 2013b). In this knowledge-based economy (Bujang & Rusli, 2013), the need to manage and retain talented staff is more important than ever.

Performance Appraisals (PAs) are developed to track and measure staff performance. Various types of appraisal have been used with varying levels of success, but they have come under much criticism by literature. The PA critiqued in this paper is the “traditional traits approach” (Johnson & Sloan, 1968. p.14). This process consists of conducting annual interviews between supervisors and their direct subordinates and a graphical or numerical scale appraisal document (Graves et al., 1994). An individual’s performance is appraised and recorded based on technical competency and behavioural traits (Oberg, 1972). This information then becomes the basis for meting out performance-based rewards and punishments (Graves et al., 1994).

This paper seeks to deliver an overview of the evolution of PA into the more current and strategic Performance Management System (PMS). First, we identify the shortcomings of traditional appraisal methods still adopted by many firms today. Second, we discuss how an integrated performance management system which involves employees might be implemented. Finally, we discuss the challenges of designing and implementing such a system from within and outside the organization.

I. PA Critique

The basic purpose of performance appraisal may be summarized in the chart below:

Add chart: Griffin & Moorhead 2006

Traditional forms of appraisal are designed to exert a system of control over employees (Johnson & Sloan, 1968). This relates to Douglas McGregor (1966)’s Theory X “hard...

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