Performance Appraisal and Employee Performance

Abstract

Every organization’s success is dependent on Employee performance. Committed employees enables organization achieve its objectives whereas, poor performing employees leads to downfall of an organization. To develop reliable and unbiased ways of evaluating employees, organizations should understand the key benefits of employee performance. Evidence of positive association between performance appraisal and employee performance have been recorded in literature and the confirmation have been registered in both private and public organizations. Empirical findings from some scholars have cast doubt on whether performance appraisal leads to employee performance. It has been indicated in literature that ineffective performance appraisal can be alleviated and developed by human resource functions. However studies have remained subjective in examining how performance appraisal increases employee performance. To find out the relationship between performance appraisal and employee performance using training and development as the parameter, this study used desk review and based the study on expectancy theory which underpins the construct of performance appraisal and employee performance. From the review of literature carried out, it was discovered that gaps existed in literature regarding the association of performance appraisal and employee performance. It was found out that different scholars have different concepts on performance appraisal in regard to employee performance. The study found that inadequacies in performance appraisals are related to organization structure context while others are associated with the processes. This study recommends the need to examine the association of performance appraisal and employee performance by incorporating both organization structures and processes with the focus of increasing employees’ commitment and performance. The supervisors should discuss attainable goals with the employees and there should be regular reviews. Timely feedbacks should be discussed with the individual employees. Those that achieve their targets should be recognized and poor performers should be reproached. The gaps realized should be sealed through training and development.