Performance appraisals are an essential element of the general performance management procedure. A performance management structure involves having an appraisal technique or method, substantiated by job types, colloquial and continuous feedback, leadership training, performance expectations, punitive policies, as well as employee productivity and acknowledgement. In addition, both positive and negative feedback are elements that are instrumental in the arena of performance management. However, the paramount cause of performance appraisal efficiency as well as effectiveness is how well each of these elements correlates with one another.
Performance appraisal is the procedure through which employee performance is evaluated, feedback is delivered, and development plans are designed (Youssef, 2012). Therefore, strategic Human Resource Management (HRM) is vital to successful organizational objectives. While the core objective of performance appraisals is the evaluation of employees work performance, organizations utilize performance appraisals for a variety of goals; these include managing salaries, wages, and pay incentives and adjustments. In addition performance appraisals can be performed by management to establish job placement decisions, and to validate employee punitive decisions (Youssef, 2012).
Performance appraisal is made up of several components. Youssef states…” A holistic approach to performance appraisal means viewing performance as a multidimensional system of inter-related parts” (Chp. 6.1, 2012). Consequently, it is these components that create a firm foundation for the strategy, capacity, assessment, and management of a successful performance appraisal structure that will be conducive to incessant performance advancement at both individual and managerial levels (Youssef, 2013).
In addition, performance appraisals usually correlate to such incentive structures as bonuses, that help to maintain an environment of rewarding employees founded on their job performance instead of their seniority. Although, poorly designed performance appraisals can have a negative effect on quality performers because they may not be fairly compensated, which this, in turn can eventually devastate their morale and trust in the organizational systems. Definitively, performance appraisals do deliver the essential communication for evaluating training demands as well as constructing the most appropriate training and strategic development advantages to meet those objectives (Youssef, 2012).
Strategic HR planning creates clear job analysis/design, attracts potential employees with skills and experience, helps to efficiently select employee fit, as well as train and promote, create compensation with benefits and benefit management. Thus strategic planning continues to define performance, select performance measures, assess reliability, and guarantee legal policies, measure performance, enhance feedback, while developing and achieving objectives (Youssef,...