Performance Appraisal and its Role in Change Management

Running Head: CHANGE MANAGEMENT 1
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Running Head: CHANGE MANAGEMENT 2
Abstract
The purpose of this paper is to establish performance appraisal and its effect on employee
reaction towards change. Performance appraisal sets practices in performance management and
strategic approach towards activities within organizations. Appraisal confines issues detailed
measurement of employee performance ratings and the outcome of their effort resulting in
promotion, demotion, transfer, increase in salary and termination of the contract. This paper
discusses various factors causing resistance to change and how managers through understanding
resistance may reduce opposition towards change and increase collaboration. Employees face a
dilemma when not involved in the plan for change, unclear reasons for change and mistrust
contribute to change resistance. Fear and perception of employees towards change make them
oppose the new system of doing things. The paper seeks to explore implications for resistance to
change, recommendations for leaders on the resistance to change within the organization. The
document discusses strategies to improve employee performance and the effectiveness of
performance appraisal. It outlines strategies that ensure a positive outcome to enhance
organizational performance. This involved regular feedback to employees and the consolidation
of worker performance. Early communication is necessary for any clarification for effective
change within the health facility.
Key Words: Appraisal, Resistance, Change

Running Head: CHANGE MANAGEMENT 3
Change Management
Issue
Performance appraisal is a systematic evaluation of employees’ performance on the job
and their potentials for progress within the organization (DeNisi & Murphy, 2017).
Maintaining output with few employees effectively improve the overall performance of the
organization and thus very essential in achieving organizational goals and objectives.
Management is responsible for evaluating the performance of their employees and discover their
worth for the job they are entrusted with. An organize performance appraisal offers information
essential for decision making such as pay increase, training, transfers, promotions and
development. Moreover, performance appraisal offers systematic judgements to support
transfers, demotion, salary increase and termination of contracts. This paper discusses
performance appraisal and its role in change management.
Factors Leading to the Issue
Furthermore, not all employees are positive towards change in organizations. Several
factors contribute to such reactions and managers be prepared for such resistance. Most
employees do not understand the need for change, especially if the reason for the change is not
clear. They believe that the current manner of doing things works well for them (Alvesson &
Sveningsson, 2015). Besides, some fear of the unknown and feel that change will come with
greater risks than the current system. People fear that change will alter their skills, and thus, they
will not perform well as before. They think the change will render them incompetent, and
therefore, they lack trust with the new system. Resistance can also occur as a result of peoples’
disbelieve for change such that some people perceive that the change will only favor certain