The performance appraisal process provides an opportunity for introducing organizational change. It facilitates the process of change in the organizational culture. The interactive sessions between the management and the employees, the mutual goal setting and the efforts towards the career development of the employees help the organization to become a learning organization. Conducting performance appraisals on a regular basis helps it to become an ongoing part of everyday practice and helps employees to take the responsibility of their work and boosts their professional development.Various studies in the field of human resources have already proved that performance appraisal process can affect the individual performance (in a negative or positive way), thus having an impact on the collective performance.
In thinking about what is meant by “change management,” at least four basic definitions come to mind:
1. The task of managing change.
2. An area of professional practice.
3. A body of knowledge.
4. A control mechanism.
The Task of Managing Change
The first and most obvious definition of “change management” is that the term refers to the task of managing change. The obvious is not necessarily unambiguous. Managing change is itself a term that has at least two meanings.
One meaning of “managing change” refers to the making of changes in a planned and managed or systematic fashion. The aim is to more effectively implement new methods and systems in an ongoing organization. The changes to be managed lie within and are controlled by the organization. (Perhaps the most familiar instance of this kind of change is the “change control” aspect of information systems development projects.). However, these internal changes might have been triggered by events originating outside the organization, in what is usually termed “the environment.” Hence, the second meaning of managing change, namely, the response to changes over which the organization exercises little or no control (e.g., legislation, social and political upheaval, the actions of competitors, shifting economic tides and currents, and so on). Researchers and practitioners alike typically distinguish between a knee-jerk or reactive response and an anticipative or proactive response.
Performance appraisal: An opportunity for an organisational culture shift
Performance appraisal process focuses on the goal setting approach throughout the organisation.
Performance appraisal helps the clarity and understanding of the roles and responsibilities of the employees.
The performance appraisal processes have the potential positive effects on recruitment
It increases organisational effectiveness i.e. what to do and how to do through a formal and structured approach.
Some evidence of the beneficial effects of team rewards