Professional Documents
Culture Documents
LITERATURE REVIEW
According to Mafelane (2010) PMS is a way of engaging government and its citizens as voters,
consumers and end-users of its services. It is a systematic process: PMS begins when a job
position is defined as when an employee leaves the organization. From a conceptual perspective,
it consists of sub-systems linked to induction/probation, job descriptions, managing
unsatisfactory performance, pay progression, incentive and reward systems, promotion,
employee assistance programmers as well as training and development (Mafelane,
2010).Holtzhausen and Venter (2010) argue that it is crucial to align each individuals
performance with the expectations of the employing institution, and the individu-als own career
patching in performance management and therefore it is necessary to set individual goals aligned
to the institutional goals. Swanepoel (1998:111) argues that performance management is about
managing people to plan their performance and reviewing these as a motivational tool. Mafunisa
and Kanyane (1992:2), as adapted in Mogotsi (2002), argue that performance management is
about getting results from individuals and teams in an organization within agreed Norms goals,
objectives and standards. Walters (1995) defines individual performance management as the
directing and supporting of employees to work as effectively and efficiently as possible in line
with the needs of the organization
Although the relationship between appraisals and performance may not be a direct and causal
one, their impact on performance may be attributed to their ability to enhance: role clarity,
communication effectiveness, merit pay and administration, expectancy and instrumentality
estimates, and perceptions of equity. Duhinsky, Jolson, Michaels, Kotahe, and Lim (1993)
discuss the concept that increases in role clarity can affect both the effort/performance
expectancy and performance/reward instrumentality estimates. Thus, by reducing ambiguity
performance appraisals may positively influence the levels of motivation exhibited by
employees. More frequent appraisals and feedback help employees to see how they are
improving, and this should increase their motivation to improve further (cf. Kluger and DeNisi,
1996).
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Appraisals are generally considered to have a positive influence on performance, hut they also
may have a negative impact on motivation, role perceptions, and turnover when they are poorly
designed or administered (Churchill et al., 1985).
The ultimate goal of performance appraisal should be to provide information that will best enable
managers to improve employee performance. Thus, ideally, the performance appraisal provides
information to help managers manage in such a way that employee performance improves
(Angelo S. DeNisi and Robert D. Pritchard, 2006). Providing the employee with feedback is
widely recognized as a crucial activity. Such feedback may encourage and enable selfdevelopment, and thus will be instrumental for the organization as a whole Yehuda Baruch
(1996). Larson (1984) supports the importance of evaluations in terms of their effect on
organizational effectiveness, stating that feedback is a critical portion of an organization's control
system
that you and your sub ordinate agree on his or her duties and job standard. 2. Appraise the
performance: Means comparing your subordinate's actual performance to the standards that have
been set. 3. Provide feedback: Means discuss the subordinate performance and progress, and
make plans for any development required. The findings were followed by a detailed performance
appraisal, which led to the resignation of 70 managers during the period, July-November 2000.
After adopting Performance Appraisal System following changes were made in the organization:
(I) the top management decided to provide necessary training to the employees so that they can
adapt to the new culture.
(ii) The company focused on hiring new managers to compensate for loss of manpower due to
resignation and making the recruitment and selection process more effective.
(iii) The top management decided to make performance appraisal an integral part of performance
management
SUGGESTION
1. The Coca Cola Company should consider using 360 degree feedback appraisal system as they
more to peers.
2. For every organization the awareness of performance appraisal is important. So the
organization needs to create 100% awareness about performance appraisal system.
3. The performance appraisal should be conducted based on the well-defined objective.
4. Job analysis is one of the dominant factors for appraisal so the organization needs to give more
importance for job analysis while conducting appraisal.
5. The organization has to increase efficiency of system by establishing the good standards for
performance appraisal.
SUMMARY
Performance appraisal is essential for a firm that need manage its human resources effectively in
order to reduce costs and maximize profits. Firms that want to maintain high morale will also
ensure that their employees feel appreciated and motivated .The number of organizations using
performance appraisals as a managerial tool necessary for facilitating the performance levels
necessary to achieve the companys mission and strategies is on the increase. Many companies
are just now realizing what an effective tool a performance appraisal can be. They have begun to
emphasize the correct use of performance appraisals in their organizations for the betterment of
the company. Employees are likely to be motivated to achieve such recognition. But the firm
must have devices for ensuring accurate measurement that employees have confidence in and
which allow the firm to make fair judgments regarding their use and future needs of human
resources.
https://www.academia.edu/8310795/Performance_Appraisal_The_Coca_Cola_Company__U.S._
http://www.fgm.usj.edu.lb/pdf/a12008.pdf