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1. Literature review of performance appraisal
In this file, you can ref useful information about literature review of performance appraisal such
as literature review of performance appraisal methods, literature review of performance appraisal
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I. Contents of getting literature review of performance appraisal
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Employee acceptance is a critical component of an effective performance appraisal system.(1)
Research in organizational behavior clearly demonstrates that employee attitudes influence
behavior,(2) and participant attitudes toward performance appraisal systems are no exception.(3)
The attitudes of system participants play a key role in both the short and long term success of a
performance appraisal system.(4) The goal of this research is to identify the characteristics of
municipal government performance appraisal systems that are associated with perceived
employee acceptance as reported by a national sample of municipal government personnel
officials. Performance appraisal systems are but one component of an overall system of human
resources management that is designed to enhance employee effectiveness. The key is the proper
design and administration of the system in order to benefit both employees and management.(5)
Performance appraisal systems are employed to serve a host of administrative and developmental
purposes from providing specific performance feedback to generating information for merit pay,
promotion, demotion and other personnel decisions.(6)
Personnel officials were the mandated respondents as stipulated by the grant that partially funded
the research. The analysis is only suggestive for the obvious reason that the direct participants in
the process, raters and ratees, are not the research subjects. Nevertheless, this effort provides
insight and information on both the structural characteristics of appraisal systems and the
perceptions of a key actor in the appraisal process.
Literature Review
2. Performance Appraisal System Acceptance
One of the serious weaknesses in existing performance appraisal research is a dearth of attention
to performance appraisal system acceptance. The most detailed conceptual discussion of the
variables that comprise employee acceptance is by Carroll and Schneier.(7) Ratee acceptance is
maximized when the performance measurement process is perceived to be accurate, the system is
administered fairly, the appraisal system is congruent or doesn't conflict with the employee's
personal goals and values, and when the appraisal process does not exceed the bounds of the
"psychological contract" between rater and ratee. There are a number of negative consequences
if a system is perceived to be unfair or unacceptable because employees will reject the
performance rating and the process that generated it. The consequences include a reduction in the
motivation to change behavior based upon appraisal feedback, a rejection of the validity and
usefulness of appraisal information,(8) and unwillingness to accept the validity of personnel
decisions based upon appraisal information. In terms of expectancy theory, a lack of acceptance
will adversely influence employee perceptions. That effort will lead to a designated performance
level because performance measurement is viewed as being inaccurate or unfair.
To illustrate the positive effects, Roberts found that when personnel officials perceived higher
levels of rarer and ratee performance appraisal system acceptance, a number of positive
outcomes were produced.(9) These included perceptions that the system exerted a favorable
influence on employee motivation and productivity and that acceptance enhanced the ability of
the system to reduce absenteeism and retain good employees.
Employee attitudes influence the attitudes of raters.(10) If employees are hostile and reject the
system, raters may be unwilling or unable to effectively implement performance appraisal due to
the costs attached to employee resistance.(11) Raters that lack motivation to effectively
implement the process will meet only the minimum requirements, and with performance
appraisal, the minimum is rarely sufficient. This lack of motivation will lead to rating errors,
general or ambiguous performance feedback, inadequate performance documentation, and a lack
of confidence in the utility of performance appraisal information. …
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III. Performance appraisal methods
3. 1.Ranking Method
The ranking system requires the rater to rank his
subordinates on overall performance. This consists in
simply putting a man in a rank order. Under this method,
the ranking of an employee in a work group is done
against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job
performance against another member of the competitive
group.
Advantages of Ranking Method
i. Employees are ranked according to their performance
levels.
ii. It is easier to rank the best and the worst employee.
Limitations of Ranking Method
i. The “whole man” is compared with another “whole man”
in this method. In practice, it is very difficult to compare
individuals possessing various individual traits.
ii. This method speaks only of the position where an
employee stands in his group. It does not test anything
about how much better or how much worse an employee
is when compared to another employee.
iii. When a large number of employees are working, ranking
of individuals become a difficult issue.
iv. There is no systematic procedure for ranking individuals
in the organization. The ranking system does not eliminate
the possibility of snap judgements.
2. Rating Scale
Rating scales consists of several numerical scales
representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are
derived. Advantages – Adaptability, easy to use, low cost,
every type of job can be evaluated, large number of
employees covered, no formal training required.
Disadvantages – Rater’s biases
4. 3. Checklist method
Under this method, checklist of statements of traits of
employee in the form of Yes or No based questions is
prepared. Here the rater only does the reporting or
checking and HR department does the actual evaluation.
Advantages – economy, ease of administration, limited
training required, standardization. Disadvantages – Raters
biases, use of improper weighs by HR, does not allow
rater to give relative ratings
4. Critical Incidents Method
The approach is focused on certain critical behaviors of
employee that makes all the difference in the
performance. Supervisors as and when they occur record
such incidents. Advantages – Evaluations are based on
actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases,
chances of subordinate improvement are high.
Disadvantages – Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback
may be too much and may appear to be punishment.
5. Essay Method
5. In this method the rater writes down the employee
description in detail within a number of broad categories
like, overall impression of performance, promoteability
of employee, existing capabilities and qualifications of
performing jobs, strengths and weaknesses and training
needs of the employee. Advantage – It is extremely
useful in filing information gaps about the employees
that often occur in a better-structured checklist.
Disadvantages – It its highly dependent upon the writing
skills of rater and most of them are not good writers.
They may get confused success depends on the memory
power of raters.
6. Behaviorally Anchored Rating Scales
statements of effective and ineffective behaviors
determine the points. They are said to be
behaviorally anchored. The rater is supposed to
say, which behavior describes the employee
performance. Advantages – helps overcome rating
errors. Disadvantages – Suffers from distortions
inherent in most rating techniques.
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