Performance Evaluation System – Key to Employee Development

Managing Human Resources in today's dynamic environment is becoming more and more complex as well as important. People are now being recognized as a valuable resource in an organization. Performance Appraisal has increasingly become part of a more strategic approach to integrating HR activities and business policies and may now be seen as a generic term covering a variety of activities through which organizations seek to assess employees and develop their competence, enhance performance and distribute rewards (Fletcher, 2001). Thus, both practice and research have moved away from a narrow focus on psychometric and evaluation issues to developmental performance appraisal, which may be defined as any effort concerned with enriching attitudes, experiences and skills that improves the effectiveness of employees (Boswell and Boudreau, 2002). Performance Appraisal is a very important tool that is used to measure frameworks set by organizations to its employees. Individual contribution and performance is tracked against organizational goals and individual opportunities and strength is assessed for future improvements. This study examined the status of The Performance Evaluation System and it's implication for individual and organizational growth. Only when individuals are continuously appraised and evaluated can Organizational performance and its resultant efficiency and effectiveness be achieved. More now than ever inability of organizations to implement an effective performance appraisal strategy has hindered them from achieving competitive advantage. Objectivity and fairness are hindered as many a times appraisal processes are not systematic and regular and are often affected by personal influences occasioned by organizations pre occupation. This hinders the overall performance of individuals, hence a 360 degrees appraisal system should be put in place whereby everybody is involved in the appraisal process and the average should be considered. There should also be counseling sessions post appraisals wherein superiors could share feedback with subordinates and their strengths and weaknesses could be discussed and an agenda could be set for better future performance. Organizations should start giving more importance to evaluation of their employees and accept that training needs can only be identified from performance appraisal outcomes. Organizations should revisit and redesign its appraisal system to align it with its Vision and Mission so that there is attainment of Organizational goals.