Employee performance measurement and performance appraisal policy in an organisation

Abstract

Performance appraisal policy has been viewed by organizations and human resources practitioners as an effective tool for human resources management. However, effective performance appraisal policy remains a practical challenge to managers and employees because of cognitive, motivational and behavioural factors. There are various methods of performance appraisal. In fact, each organization may have its own unique policy and method of appraisal. In one organization, it may be continuing and informal where personal opinion of a superior about his/her subordinates may be the basis of appraisal. In another, it may be well-defined and a particular policy and approach may be followed by all managers. Usually the method of performance appraisal dictates the time and effort spent by both supervisors and employees and determines which areas of performance are emphasized. Ideally, a performance appraisal policy should be objective, accurate and easy to perform.