BENEFITS OF PERFORMANCE APPRAISAL

The idea that a well-designed appraisal system can create many benefits to the
organization has made performance appraisal gained significant attention in private as well as
public sectors. Basically the most effective performance appraisals are the one that are deemed
beneficial to the employees, the managers and the organization as a whole.
CHARACTERISTICS OF GOOD PERFORMANCE APPRAISAL OBJECTIVES
Performance appraisals are needed to provide feedback to employees about their
performance normally in one year. Managers use performance evaluation to help employees in
setting their goals in improving their own productivity. In addition, organizations also use
appraisals to identify and reward the best performers. In order to achieve all of these, the
appraisal must be valid and reliable, acceptable and feasible, specific as well as based on
organizations mission and objectives.

HOW EMPLOYEE PERFORMANCE IS APPRAISED

There are actually plenty of ways on how managers can evaluate the performance of their
workers. Some of the methods are classified into traditional and modern methods. Traditional
ones is a list of techniques such as narratives, ranking method and so on. While, modern one
consists of management by objectives (MBOs), 360 degree, 720 degrees and so on. No matter
what method used, each of the method have its own strength and limitations.

RECOMMENDATION
To ensure the effective implementation of performance appraisal system used in PgDC,
there are various issues need to be addressed. Main issue is normally about the fairness of the
evaluation decision. From my own point of view, in PgDC case, the performance appraisal is not
utilized for developmental purpose but merely as an annual or once in a year process. Once the
forms are filled in, then it will be processed with no further specific action other than increment
in income provided that the workers got more than 80 percent of marks. Here, I can say,
performance appraisal are treat as an exercise, and have very little relationship with individuals
career development, training. In addition, most of the appraisers are not given enough exposure
or guidance as how to appraise workers.
Performance appraisals are vital to every organization. Therefore to ensure better
productivity of employees, I suggest PgDC to implement current performance appraisal with 360
degree feedback appraisal, train the appraisers and do regular review on the performance
appraisal use in PgDc.

CONCLUSION
The performance of employees is vital to the organization. Performance appraisal helps
the employees to clearly understand their roles and responsibilities. Performance appraisals are
also important for motivation, attitude and behavior development, communicating and aligning
individual and organizational aims, and fostering positive relationships between management and
employees. Performance appraisals in PgDC use the New Performance Appraisal System
(NSAP) which derived from Management by Objectives by Peter Drucker. This method had been
used quite a long time, and still relevant and valid. However, if not review and assessed, the
effectiveness will deteriorate. As we know, not every method is perfect as each of the appraisal
technique have its own drawbacks. Although a good performance appraisal must consists of
criteria such as valid, reliable, acceptable, measureable, specific and based on objectives, it can
be conclude that not all method have all the criteria mentioned. Therefore, it is our role to
evaluate the negative things arise from the implementation of certain method, in this case NPAS.
Upon realizing the weaknesses in NPAS used in PgDC, I recommend that current method use in
combination with 360 degree feedback, train the appraisers and review the usage of performance
appraisal regularly.