Performance Appraisal Systems: Formal vs Informal

Running Head: MANAGEMENT
0
Management
4/10/2019

MANAGEMENT
1
The assignment brings about the discussion on the aspects of performance appraisal
system and the leading impact on the performance of the employees in an organisation. The
discussion will be taken forward in context to the Matrix International Corporation (IMC),
being in the position of a project leader. The Director of the company has emphasized the
aspect of success of project to be achieved through a critical analysis of the future
performance. For gaining an in-depth knowledge of performance, it is essential to conduct a
research on performance appraisal systems.
In every organisation measuring and evaluating performance is an essential part of the
organisational success. Performance appraisal is the systematic evaluation of an individual in
context to the performance at job and individual’s potential for development. It is a
developmental tool for measuring for the overall development of the organisation, along with
the employees. The objective behind using the tool to measure or evaluate performance is to
enforce and ensure promotion, training and development, compensation, and obtaining
positive feedback from the employees. However, there are variety of performance appraisal
methods used in management practices, which consists of management by Objectives, 360-
degree feedback, Performance ranking, combined manager employee appraisal and others
(Landy, Zedeck & Cleveland, 2017).
Now, the discussion will move onto the analysis of the difference between formal and
informal performance appraisal systems.
Formal appraisal systems used at a specific period, to evaluate the performance. In context to
the organisation, MIC it has been found that managers carry performance appraisal systems
over their meeting, and discuss about the employees who meet or exceed standards. Formal
feedback or appraisal of an employee is generally done on papers, and it requires to be done
on regular basis, i.e. every 90 days to the 6 months or annually (Kampkötter, 2017).
Under formal evaluation methods, 360-degree feedback is often found more relevant
to be used to evaluate in the organisation. The company mentioned above rely on this
method, to assess the performance of their employees, and provide them rewards, feedback,
compensation and other benefits accordingly. Flow of communication is also dependent on
the authorities, i.e. superior and subordinate, as it helps in undertaking the analysis of every
employee in the organisation (Ishizaka & Pereira, 2016).