The Performance and Importance of Appraisal Analysis (Term Paper Sample)

Performance appraisal is the process through which the organization evaluates the worker's performance, delivers feedback, and makes correction plans (Youseff-Morgan & Luthans, 2015). It comprises the essential strategic HRM process element and functions as an internal data resource for strategic HR planning. From performance appraisals, HR managers can gain insight into many workers' aspects, such as personality, productivity, efficiency, adaptability to variation in the work environment, communication skills, leadership and teamwork abilities, etc. By defining this information, HR managers can identify which employees to promote, transfer to different posts, lay off, and terminate. Furthermore, HR managers can use data from the performance appraisal to predict the performance of candidates who applied for a particular job (Youseff-Morgan & Luthans, 2015).
Five components of effective performance appraisal exist – design, measurement, assessment, management, and flexibility. They serve as the foundation for employees and the company's development. Rather than evaluating the worker's performance for unrelated purposes, a performance appraisal system should be designed specifically for that purpose. In the opposite circumstance, performance measurement would be biased, and the results would be misleading for workers and the company's management. Therefore, measurement plays a crucial role in performance appraisal, especially regarding jobs that challenge objective measures. Proper worker performance assessment can alleviate and improve many HR processes, giving HR management valuable feedback that helps make correction plans and decisions. Management is also essential since performance appraisal is frequently subject to office politics, specifically management manipulation due to discrimination or favoritism. When a worker loses confidence in the organization's practices or experiences discrimination, it results from unethical management behaviors associated with performance appraisal. It can result in significant financial penalties for a company or discrimination-based lawsuits (Youseff-Morgan & Luthans, 2015). Finally, the performance appraisal process should be flexible and ready to adapt to changes in the contemporary corporate structure (Feldmann, 2017). These components play a significant role in performance appraisal because it drives departmental success and worker professional growth when the evaluation process is correctly built and administered (Feldmann, 2017).