Uses of Performance Appraisal Data
Data obtained from performance appraisal can be used for many purposes including the following:
Remuneration; Training and Development and Promotions
Performance related pay system fosters hard work. The more output one produces, the more money he gets. Employees tend to work extra hard to beat targets and even goes beyond so that they can afford a decent living from a relatively high income.
However, a performance related pay works well in an environment where the output can be traced systematically and easily to one person. Where a number of people work on one output, it becomes difficult to measure each member’s input. Thus the rewarding system becomes subjective, if not unfair, to other employees. This system also encourages individualistic behavior at work. Each member tend to want to maximize his time doing a task related to his appraisal and has no time for assisting and advising other fellow employees.
Performance appraisal forms in many organizations have provision for the appraiser to sight training needs of the employee so that he can close the performance gap. When the appraisal form has been completed, it is taken to Human Resources/ Training and Development department who will in turn compile a list of the training needs for all employees and organize training as required.
Promotion that results from a performance appraisal is a sign of appreciating one’s work by giving him a higher position of authority than the one he / she currently holds. For example, if performance appraisal reveals that a Miner who always achieves his targets, the Miner is then promoted into Mine Manager’s position. This style of promoting employees seeks to motivate employee to work hard so that they can also earn promotions.
However, promotions that stem solely from the results of performance appraisal tend to raise more questions than answers. Is the employee ready for the new appointment, in terms of skills and aptitude? Was the employee’s target results a direct results of his own performance or many others were involved? What is the relationship between the appraiser and the appraisee? In an African culture appraisers tend to appraise their kith and kins more favorably so that they can attain higher positions. Lastly, how do the other employees feel about the promotion?