Performance Appraisal: Remedial Action. he first purpose of this review is to analyze theoretical aspects of performance appraisal system. The second purpose of this review is to discuss and analyze performance appraisal system (EPAP) of Commonwealth Ban
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Assignment 2 Performance Appraisal: Remedial Action Human Resource Management (HRM 502) Zaved Mannan D-6 Tower Bhaban, Fuller Road Dhaka University Campus Dhaka 1000 Bangladesh Student ID: 11320053 Date: 04.10.2010 Charles Sturt University Australia Introduction Performance appraisal is designed to look backward in order to look forward. In recent years, widespread attention has been paid to the role of performance appraisal as a critical tool in human resource management. The amount of writing in this area has increased dramatically, it is doubtful that significant progress has been made in developing appraisal system that can be both effective and acceptable to users. Bernadin and Smith (1981), for example, concluded that despite all the controversy surrounding various appraisal measures, empirical research suggests that no particular method is clearly superior to the rest. Henderson (1981, p.8) lamented, " It is unlikely that any managerial problem has so successfully resisted solution than arriving at an acceptable, useful, and valid method for appraising performance." It is not very difficult to assemble a long list of reasons why performance appraisal does not or will not work in a particular organization. The problem with most such lists that I have identified, however, is that they tend to ignore the really fundamental issues that determine performance appraisal effectiveness. The first purpose of this review is to analyze theoretical aspects of performance appraisal system. The second purpose of this review is to discuss and analyze performance appraisal system (EPAP) of Commonwealth Bank of Australia (CBA). This review will summarize some issues/problems related to EPAP and some constraints that exist in CBA. CBA needs to consider and address these issues/problems and constraints to enhance motivation and performance of employees. This review will also recommend some policies or actions for CBA's current EPAP based on the assessment. Theoretical Aspects of Performance Appraisal Performance management is about performance. Bates and Holton (1995, pp 32-36) defined performance as "is multi-dimensional construct, the measurement of which varies depending on a variety of factors."
The entire exercise - from self-review of an employee to final review by his/her superiors - takes about three months. The HR department receives the assessment in October. It carries out overall assessment of various training needs and complies various reports which are submitted to GMs and HR management. The success of EPAP depends on the sincerity shown by the management and the existence of transparent link between performance and reward. Let us examine the strengths of the EPAP as it exists on paper and in practice in CBA. Every employee is given a chance to assess his/her own performance. This ensures that the employee's view point of his/her performance is also considered. Moreover, the employee feels a sense of responsibility and knows that his/her performance is being judged on the basis of goals set for him/her in the previous year. Critical attributes are listed and areas of strengths and weaknesses are deliberate. The manager can not make general comments but has to be specific while assessing the personality traits of an individual. Also he/she must clearly point out the strengths and weaknesses of the employee so that proper training can be given to him/her. Both the employee and the superior decide the goals and objectives for the employee. Management by Objectives (MBO) depends on giving the employee a role in selecting and setting targets for his/her own development. This process ensures that unrealistic goals are not set for the employee and his superior also becomes responsible for the success of his/her success. Specific training and development plans are formulate. Either the superior or the employee can list out the training and development programmes needed for the growth and development of the employee. The bias of superior is checked by giving a role to next superior in assessing the employee's performance. The next superior analyzes very high or very low grades, thereby preventing the superior from indulging in favoritism or penalizing.
4. The PA system must be acceptable: The major operational imperative of an appraisal system is that it be acceptable to hose who will use it. When subordinates know very little about what will be tested, how they should prepared, or how performance will be scored, it is no wonder that they are suspicious, and in some cases, devious and untrue about themselves. PA system should be promoting more openness. When subordinates can collaborate openly in trying to improve performance, when how to improve performance is public knowledge, when both the assessment technique and its practical utility are understood, then we can expect to find the active participation and support for appraisal programs that is so sorely needed (Casico and Phillips 1979). 5. The PA system must be practical: Regardless of the technical superiority of any appraisal system, if it interferes significantly with ongoing operations, if data collection, recording, interpretation or storage become excessive, then the system can't be effective (Walker 2010). If workable performance appraisal systems are our top priority, then we must do everything possible to ensure that all involved in appraisal (appraisers and appraisee) are motivated to cooperate. It may well be (and this is empirically testable) that appraisers who are more involved and more interested in the test (because they were participants in a training program, or because they were deeply involved at all stages of development of an appraisal system) will make more careful and more accurate ratings (Heneman 1980). Conclusion In the organizational setting mostly people are interested to evaluate others by appraising performance, but hardly prepared to be evaluated. Hence, it is a real challenge for HR professionals to make the appraisal system more pragmatic to ensure that people trust in the system. So long a human being evaluates another; there would be some subjectivity in the assessment. Thus, it is essential to balance the subjectivity and objectivity in the appraisal system to make it people oriented, workable, and productive. Moreover the purpose of the system should be more developmental rather than punitive in nature.
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