Performance Appraisals Essay Example | Topics and Well Written Essays - 500 words - 1

Performance Appraisals - Essay Example The organization therefore can easily follow up and make necessary adjustments as necessary in a case where the employee’s performance has gone down. Performance appraisal systems that provide good merit and compensation motivate workers who in turn give their best for the benefit of the organization (Grote, 2002). Through these systems, an employee get the opportunity to clarify expectations and enable them discuss issues with their managers. This system however is associated with certain bias like contrast, halo, horn, leniency and recency. Contrast sets in when managers compare the standards of an employee with other employees rather that comparing them with the standards of the company. Halo occurs when managers rank an employee as a result of one area of improvement of the employee, these managers fail to look at the overall performance but narrow it down to one area say an employee has made lots of sales. On the other hand, horn is when an employee is rated poorly when they fail in one of the area they are supposed to perform. Leniency occurs when the manager concerned gives all the employees a satisfactory rating despite their poor performance. Finally, recency occurs when the rating of an employee is influenced by the most recent activity performed by the employee, if the employee performed poorly, his or her past good achievements are highly affected and vice versa (Hamdan, 2007). This system is very important in helping an organization attain its goals and objectives. Successful organizations trace their success from well-established communication channels between management and employees. Through performance appraisal balance between management and employees is well attained. Frequent monitoring of employees, feedback and discussion lead to a good relationship that helps in attaining of the company objectives. Every company has a goal of being successful in what they do and this can only be