Homework help > Performance appraisal systems often fail to delive... > Published by: CPA Guru 4 years ago
By: CPA Guru
Subject: Business Management
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Performance appraisal systems often fail to deliver for organizational effectiveness and employees. Explain why that happens. ...[Show More]

4 years ago


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Reasons why Performance Appraisal Systems Fail--------------- --------Performance appraisal systems are the tools used by organizations to measure the employees' performance. However, it fails to deliver for organizational effectiveness and employees in most of the companies due to various reasons that are being contributed by the management of the organization. The personal judgment of the manager is the first reason why the system fails. It is because most of the time, the performance administrators offer their individual judgments, views, and opinions rather than the performance assessment parameter (Murphy and Deckert, 2013 p. 40). They consider their subjective opinions and evaluate the performance of their employees contrary to the assigned objectives and goals. This makes the management of the organization to make decisions that negatively impact the way the activities of the organization is being carried out. Eventually, the company's objectives are not met, which affects its overall performance. It is then evident that the managers get to belief in their individual methods of assessment rather than considering the effective ways of evaluations. Lack of proper leadership, ownership and interest of the manager is the second reason which results in failure of performance management systems. The process of performance assessment consumes a lot of time since it involves several discussions, designing techniques, and feed from the manager. As a result, the managers do not show interest in developing and designing the standards of performance as they consider it a waste of time. They get to involve themselves in other personal activities rather than sacrificing their time in assessing the performance of their employees. As pointed out by the competency model, execution of performance assessment systems in any company is a responsibility of the management of the organization and the managers. However, when their company lacks proper ownership, leadership and interest, which includes the attributes, skills and abilities as well as the communication and supervision channels, it loses the independence of the personnel. The managers should then understand that performance assessment is a constant process that is considered from the top level of the company to the bottom level (DeNisi and Smith, 2014 p. 129). This, therefore, affects the performance of the employees and the organizations since the goals set are not clear, and the managers do not engage themselves in the assessment process. An improper communication channel is the final cause of the failure of the appraisal systems. In many of the companies, managers do not give direct responses to the personnel regarding their performance. They leave the employees to carry out their own activities without giving them the directions required. The managers hence tend to resist and close the communication channel for receiving and giving feedback with their subordinates (Boachie-Mensah and Seidu, 2012 p. 73). This, therefore, impacts the appraisal system because the manager will not be able to identify the weaknesses of the organization and what needs to be done to ensure that there is improved performance. They will also not be able to determine the level of performance of their employees since the directors do not involve themselves with the employees. For this reason, the assessment systems are impacted since there are no clear directions on how the activities of the company should be done. References Murphy, K.R., and Deckert, P.J., 2013. Performance appraisal. American Psychological Association. DeNisi, A., and Smith, C.E., 2014. Performance appraisal, performance management, and firm-level performance: A review, a proposed model, and new directions for future research. Academy of Management Annals, 8(1), pp.127-179. Boachie-Mensah, F.O., and Seidu, P.A., 2012. Employees' perception of performance appraisal system: A case study. International Journal of Business and Management, 7(2), p.73.

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