Performance to design, method of implementation and user
appraisal system is an important part of Human Resource Management. Performance
Appraisal is the process of evaluating the behavior of employees in workplace.
Many of the big organization have HR department for performance appraisal and
other HR work. Performance appraisal has widened as a concept and as a set of
practices and in the form of performance management has become part of a more
strategic approach to integrating HR activities and business policies (Fletcher, 2001).
Performance appraisal is one of the most complex and
controversial human resource techniques. Participatory performance appraisal is
an essential and proven attribute of an effective performance appraisal system
(Roberts, 2003). A literature-based model of the determinants of the
accuracy of performance ratings is presented. The model indicates that the
major determinants of accuracy are: (a) rater motivation; (b) rater ability;
and (c) availability of appropriate judgmental norms. Several propositions and
suggestions for further research are derived from the components of the model (Decotiis & Petit, 1978). Individuals’ reactions to their performance appraisal
interviews were examined in two analyses of managers who appraised their
subordinates. We hypothesized that managers’ reactions toward their own
appraisal interview would be influenced by both supervisor satisfaction and
favorability of the feedback they received. We also hypothesized that managers’
reactions would be affected by system satisfaction (Russell & Goode, 1988).
The distinction between the three justice types to be
merited. While organizational practices and outcomes were related to the three
justice types, demographic characteristics of the perceiver were, in large
part, unrelated to perceived justice. Job performance and counterproductive
work behaviors, considered to be outcomes of perceived justice, were mainly
related to procedural justice, whereas organizational citizenship behavior was
similarly predicted by distributive and procedural justice. Most satisfaction
measures were similarly related to all justice types. Although organizational
commitment and trust were mainly related to procedural justice, they were also
substantially related to the other types of justice. Findings from laboratory
and field studies are not always in agreement. Future research agendas are
discussed (Cohen-Charash & Spector, 2001).
The effectiveness of a good performance management
system is heavily dependent on its scientific design and methods of
implementation. According to design, method of implementation and user accountability.
A weak performance management system will not only fail to increase employees’
performance but May actually create loss for the organization in achieve
strategic goals. Applying poor performance Management system can create many
serious difficulties; it can create a perception of inequity and change in
individuals’ behavior. As a result of this job dissatisfaction will be
increased and employee retention rate will be decreased and company will lose
its desired productivity (Aguinis, 2009).