Effect of Performance Appraisal on Employee retention in an Organization
Role of Performance
Appraisal in Modern Context…..
Having
a group of self-satisfied and self- motivated employees, is a great asset for
an organization. Therefore, many great organizations use different type of
approaches to keep employees happy with the organization. These approaches always
contribute to improving performance as well as organizational stability. Effective
organizations use performance appraisal as a leading methodology to
delight employees. And now it has become a part of process in HR Management. Performance
appraisal creates more advantages to understand about the employee potential
and strength as well as opportunity for the next improvements. Now a days
through a proper performance appraisal, employee also gets more tangible
benefits and rewords. Not only the financial benefit, but also the carrier
growth opportunities as well. By using this tool, most leadership motivate the
teams to attract with the organization and that leads for a better employee
retention.
Literature
reviews
According
to Elton Mayo’s Hawthorne Effect, revealed that employees were extremely watchful for the extra care and attention from
their senior leadership and the impression that their leadership genuinely appreciated
and interested on their work. (https://granite.pressbooks.pub, 2021)
Also,
a famous social psychologist Abraham Maslow says in his “Hierarchy of needs Based
Theory” that the employee motivation can be described as a fulfillment of
numerous types of their requirements. (https://granite.pressbooks.pub, 2021)
Figure 01: Maslow’s Hierarchy of Need Based Theory, ( www.wakethefunup.com, 2021)
An
American psychologist Clayton Paul Alderfer also explained about the people
motivation through his ERG theory. And he emphasized that there are three
groups of fundamental requirements available and when people not meet the
expected category of needs, they put extra effort to fulfill the needs in the
lowest possible. (https://granite.pressbooks.pub, 2021)
Conclusion
Self-motivated
employee is a great asset to an organization. Retaining these employees would
create an added advantage for any organization. Identify the talent and treat employee
to stay satisfied in the working environment,
will support to retain the talent within the organization. Also, according to
the arguments made through the great theories emphasized that, motivation would
be a key factor for the employee retention. To give motivation or keep
employees happy, regular base Performance Appraisal or evaluation is a crucial
factor in current HRM strategy. Therefore, this can be concluded that, correct
approach of Performance Appraisal creates a positive impact on the employee
retention in an organization.
References
Graduate, S. (2019, December). https://pressbooks.com.
Retrieved from https://pressbooks.com/support/:
https://granite.pressbooks.pub/mgmt805/chapter/theories-of-motivation/
https://talentchaser.com. (2021, July 21). Retrieved from https://talentchaser.com:
https://talentchaser.com/tc/services/performance-appraisal/
Well explained Duminda. employee engagement is one of the key ingredients for achieving high performance. There are a number of different theories & models of employee engagement. Another aspect of instilling trust & confidence among employees is ensuring that managers lead by example when it comes to performance management behaviors. Managers who devote regular time to discussing performance & personal development, who give frequent, positive feedback & who adopt a coaching style of management are likely to gain trust and respect from their team members. Thank you for sharing.
ReplyDeleteHi Harsha,
DeleteThank you very much for spending time to go through the article and share your valuable thoughts.
Hi Duminda. Well explained. Performance appraisal is quite possibly the main human resource management rehearses as it yields basic choices basic to different human resource activities and results. Line managers assume a significant part as implementers of performance appraisal, ordering methodology planned by the HR work. However, the genuine worker experience of these systems and the impression of equity in the process is probably going to have ramifications for levels of organizational commitment. Therefore its is vey important to appraisal, delight and motivate the employees in correct way.
ReplyDeleteHi Parami ,
DeleteThank you very much for nourishing the content of the article.
Really appreciated your valuable comment.
This comment has been removed by the author.
ReplyDeleteThank you for sharing Duminda,
ReplyDeletePerformance appraisal gives the employees opportunity to be motivated through positive feedback, and also it helps to identify the areas for improvement and development plan. A well structured and constructive Performance appraisal will become a tool to transform the employees and increase individual capabilities.
Hi Fayaz,
DeleteHighly appreciated your valuable thoughts. I too agreed with the comment that you shared regarding the effectiveness on improvements and development.
Great topic Duminda. I should say the evaluation of performance is vary from organizations. And it should be a unique process for each and every staff member. My opinion is there should not be a common model for performance evaluation. It change on employee, job role and the situation. Thanks for sharing this
ReplyDeleteHi Oshadha,
DeleteThank you very much for valuable ideas shared regarding the article.
Absolutely yes, there should be a different mechanism of evaluating the employees in organizations.
Hello, Duminda. I fully agree with your conclusions. Employee appraisal will certainly have a positive impact on a company and will help to lower employee turnover.
ReplyDeletegood luck..
Hi Praveen,
DeleteThanks for the valuable thoughts and the agreement had on the post. As you emphasized, proper appraisal mechanism leads for better results in an organization.
The success of any organization is dependent upon employee performance. Employees are valuable assets and due to the highly fluid nature of the asset, it has become most important for every organization. The organization can gain competitive benefits by retaining loyal, productive and qualified HR.
ReplyDelete“Improving employees’ performance would lead to an increase in their satisfaction and their commitment with the firm, or in other words, this makes employees trust, engage and be loyal with what the corporate expects them to do (Kuvaas, 2011; Mayer & Davis, 1999; Murphy & Cleveland, 1995)”
Hi Sunith,
ReplyDeleteThanks for nourishing the discussion by bringing some good literature.
Great stuff Duminda.
ReplyDeleteAccording to Aylen (2015) employees’ performance appraisal helps managers to successfully implement employee retention within an organization. Therefore, it is essential for managers, to have in their priorities a systematic employee assessment plan to create a suitable environment conducive to organizational success.
Simply put, effective performance management is one that reflects the ideal goal of motivating employees to express their thoughts about work performance. Performance management is a tool that allows an organization to create an effective communication system between managers and employees on a consistent basis. Furthermore, performance management is an important review process to ensure that both the organization's and employees' expectations are met.
Hi Umesh,
DeleteAppreciate your valuable thoughts and insights about the post. Hope I too have constructed the same argument on the effectiveness of the Appraisal mechanism in an organization.
Thanks.
Agreed with you Dumnda.Transparent and unbiased performance appraisals create a self-sustaining virtuous cycle of positivity within organizations. Employee motivation creates positivity in the workplace, which then fuels better performance and motivates employees even further. Another unique value-add that appraisals offer is in employee retention.
ReplyDeleteReally appreciate your valuable insights regarding the topic Bashitha. As you correctly said the appraisal mechanism has to be carried out with an unbiased environment. Transparency is a crucial factor for a productive appraisal.
DeleteSuccessful employee retention is fundamental for a companies' dependability, development and profitability as Employees are the most valuable resource of an organization. It can be accomplish by,
ReplyDelete1. Good communication empowerment.
2. Recruiting a Diverse labor force.
3. Recruiting properly talented individuals.
4. Improvement of skills through Training programs.
(Chang and Tahn , 2006) found that performance appraisal systems based on goal setting would be more effective in the context of employee retention. But, necessarily performance appraisal need to be fair and transparent, and well communicated to employees. if so employees will be motivated, their commitment will be increased, and seeking the opportunities to growth they will be retained in the organization. Thankyou for sharing this interesting article Duminda.
ReplyDeleteA performance appraisal, also known as an employee evaluation, is a type of assessment and review of an employee's job performance. When an employee is reminded of the role that the company expects him to play, it can be a useful tool. An employee evaluation system is used by the majority of businesses; employees are evaluated on an annual or regular basis. Performance appraisal provides employees with the opportunity to be motivated by receiving positive feedback, while also assisting in the identification of areas for improvement and the development.
ReplyDeletePerformance evaluations are beneficial to more than just employees. Organizations that use data from performance appraisals to identify areas of strength and opportunity may profit as well. Performance evaluations can help identify areas where more training is needed, as well as provide direction for leadership development, performance improvement, and succession planning. With the right performance appraisal, employees can be motivated and turnover can be decreased.
ReplyDeleteEvery employee in the organization has a KPI to meet, and at the end of the financial year, they may be required to assess progress by analyzing previous year's achievements. Perfomance assessment will be used to carry out this procedure.
ReplyDeleteAn employee may use a performance assessment to give positive comments as well as highlight areas for development. An employee and his or her boss might discuss and even construct a developmental (training) plan to help them enhance their abilities. Finally, it allows both the management and the employee to define long- and short-term objectives. Which also can result in higher employee retention and engagement rates over time
Thank you for providing such an interesting toipc.
Excellent work Duminda, and best wishes for your next blog articles.
Thank you so much sharing all this wonderful info.Performance appraisal is credited with encouraging employee loyalty, fostering teamwork, impacting other Human Resource functions positively and also positively involved in employee motivation. Owing to the role these factors play in attaining organizational goals, many organizations invest in Performance appraisals.
ReplyDeleteGood stuff Duminda.
ReplyDeletePerformance appraisals are useful tool for employee development. It can provides guidance to employees who are doing well and employees who may require improvement. Appraisals can also be used to improve employee's performance through goal setting. Performance goals aim to encourage workers to increase their productivity and efficiently.
Employee performance has a significant impact on the company's ability to achieve its goals. An effective performance appraisal evaluates an employee's capacity to execute job objectively and on a regular basis utilizing particular criteria. Employee performance appraisals have a good impact on productivity, providing clear information about job results, boosting employee contact with the organization, but also preventing misconceptions about the quality and results of previous work.
ReplyDelete