by Bethan Jones

Created on: June 07, 2009

The performance appraisal/reward system is one of the most important line management responsibilities within an organisation, but is often criticised by both managers and employees. Some of the most common complaints are that the objectives employees are measured against aren't the same as the things they do on the job; that the system is a waste of time because no one looks at the appraisal reports; and that it's a question of who you know not what you do that determines the rating you get.

Despite these complaints though, performance appraisals can prove to be a valuable part of an organisation's ability to achieve its goals. Performance appraisal and reward should be intrinsically linked to achieving the organisation's objectives by:

Developing clarity: developing objectives, job description, job profile, IDPs, and relating these to the organisation's business plan so that the employee is aware of their responsibilities and how these relate to the organisation as a whole. Building capability: implementing improving under performance measures, providing training and deputising opportunities, encouraging continuous improvement, helping employees achieve objectives/individual plans to ensure that staff are capable of carrying out their roles. Differentiating rewards: developing effective performance related pay policies, implementing improving under performance measures, encouraging praise and recognition of employees, assessing box markings and carrying out 6 monthly reviews to ensure that an effective reward system is in place that will recognise employees for putting in extra effort to achieve theirs, and the organisation's, objectives.

The intention of the performance management system is to translate organisational goals into individual, team and departmental goals. It does this by:

clarifying organisational goals. providing a process for measuring output against objectives as well as examining the input needed to achieve the objectives. relying on consensus and cooperation instead of control and coercion. encouraging self management of performance. being a continuous, evolutionary process that achieves improvements over time. being strongly associated with development and identifying the developments needed.

So with this view of performance appraisals in mind, what are the main requirements for creating and using an effective performance appraisal

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