Critically evaluate the effectiveness of performance appraisal as a Essay

Critically evaluate the effectiveness of performance appraisal as a means of identifying and meeting employee development needs - Essay Example Performance appraisal therefore is very evident especially in total quality management. Quality is of higher significance especially in industries where there is a need to come up with competitive advantage. In the case of car manufacturing industry for instance, quality assurance is of high interest because the output or product offerings should be enough to convey customer’s trust and loyalty. Thus, an organisation belonging to this industry must be able to come up with performance appraisal among its employee to constantly check quality and organisational performance. This evaluation is centered to an individual’s performance and potential development (Singh et al., 2008). It is clear that employee performance appraisal is one of the bases in which the company has corresponding idea on how to determine employees’ given compensation and other privileges. However, despite the presence of performance appraisal in almost every company or organisation, there still a need to evaluate if it actually helps identify and meet employee’s development needs. Performance appraisal defined Evaluation is very important especially in the corporate world because it is a way in which corporate performance is known at a specific significance. The case of evaluating employee performance is a complex task depending on the nature of business operation. Employee is naturally under evaluation and it may be monthly, quarterly or annually depending on the organisation. The evaluation is said to be formal because it determines an employee’s career in the organisation. This evaluation is known as the performance appraisal and it actually helps the company decides of one’s career opportunity (Randhawa, 2007). It is a form of assessment in which an employee’s strengths and weaknesses are identified and observed for the purpose of enhancing, improving or commending performance for potential development (Landy and Conte, 2009; Aswathappa, 200 5). Performance appraisal is very complex because it involves specific standard that if not properly understood, it would result to a certain level of confusion and unnecessary feedbacks (Sandler and Keefe, 2003). Thus, it is important that employees must be able to understand what performance appraisal is all about and what it is for (Landy and Conte, 2009). The role of performance management Managers have important role to play when it comes to performance management process. One of the most and obvious role of performance management is to create a business environment that supports development and effective coaching for individual performance (London, 2003; Podger, 2009). With performance management, there is a considerable feedback that can become the basis of evaluation and control. The case of Investors in People is a good example because it is about business improvement and it tries to coach organisations to achieve their full potential. They target to help businesses improve their performance by knowing their priorities. There are many priorities that an organisation should focus. The Investors in People accredited organisations have significant priorities which include managing change, increasing efficiency, maximising profitability, increasing sales, improving productivity and strategic leadership. All of these priorities are eventually integrated with understanding the essential potential of company and its employees. Citing the case of AA Security Ltd, quality