Performance appraisal system is the process of evaluating the performance of an employee (Schermerhorn, Hunt, & Osborn, 2002). The information gathered from such evaluation is shared with employees. This critical information regarding their strengths and weaknesses helps enhance their scope for improvement. Over the last century, many performance appraisal systems have been introduced by various researchers and organisations. These systems were subject to advantages and drawbacks.Read more »
Since the 1980s there has been an increasing emphasis on the importance of performance management systems. It involves the identification of certain parameters, also known as key performance indicators to effectively evaluate the performance of an employee. Key performance indicators can be defined as,
the physical values which are used to measure, compare and manage the employees’ as well as overall organizational performance (Gosselin, 2005).
Goal-setting theory refers to the effects of setting goals on subsequent performance. Researcher Edwin Locke found that individuals who set specific, difficult goals performed better than those who set general, easy goals (Yearta, Maitlis, & Briner, 1995). The goal-setting theory states that specific and challenging goals with appropriate feedback contribute to improved performance. Goals direct the employee to perform their jobs. It further facilitates the employees in understanding the number of efforts required to put in. Read more »
Management of human resources is an important and complex process of an organization. Performance management systems help to retain the talents within an organization and growth of the organization (Jenkins, 2005). Organizational justice theory helps the performance management process of an organization to make it more transparent, trustworthy, and reliable. Read more »
Victor Vroom proposed the expectancy theory of motivation in 1965. It is the most comprehensive and realistic, underlying other motivation theories. Expectancy theory featuring the performance management system states that the motivation of employees and their reflected behavior in the workplace depends upon the following key elements:
- Instrumentality and
Expectancy is a belief for performing a job satisfactorily, instrumentality involves rewards for performances and valence focuses on the value of the positive rewards (Parijat & Bagga, 2014). Read more »
General Electric (GE) Company is a global digital company established in 1892 by Thomas Edison, Charles A. Coffin, Elihu Thompson and Ediwin J. Howston in New York. The main business of GE is production of aircraft engines, power generation, oil and gas production equipments, medical imaging, financing and industrial equipment. Read more »
There are various methods which organisations adopt to measure employee performance such as:
- comparative approach,
- attribute approach,
- behavioural approach,
- result approach and
- quality approach.
Behavioural approach is the most commonly adopted approach and comprises of vertical scales which are based on certain parameters. Organisations use following techniques to measure employee performance: