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Performance Appraisals Impact on Decision Making

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Define performance appraisal, and explain the areas in which performance data and information are used for making decisions. Discuss the issues that employers face in measuring and rating employee performance.

Henderson, R. I. (2006). Compensation management in a knowledge-based world (10th ed.). Upper Saddle River, NJ: Prentice Hall.

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Solution Summary

This solution defines performance appraisals and explains where performance data and information is used for making decisions during performance appraisals. It includes items that employers face in accurately performing performance appraisals. Includes APA formatted references.

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A performance appraisal is the review and discussion of an employee's performance based on his or her assigned duties and responsibilities. The purpose is to measure skills and accomplishments with reasonable accuracy, fairness, and uniformity. The employee's personality characteristics are not measured; instead, the focus is on the results an employee has obtained in carrying out his or her job duties. It is used to identify area that need improvement and help an employee achieve growth in his or her position. A key component of this process is for a supervisor to be constructive and objective during the appraisal, both in evaluating the employee's work performance and in reviewing the performance with the employee. In addition, an employee must be open to constructive feedback and be willing to make adjustments in his or her behavior to achieve greater performance on the job. The goal of a performance appraisal should be to recognize performance, review progress, and ...

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