Analyzing Performance Review Systems in Human Resource Management

This report analyzes performance review systems within human resource management, emphasizing their role in fostering communication, efficiency, and goal achievement. It explores the evolution of performance reviews beyond mere appraisals, highlighting their function in employee development and organizational effectiveness. The report examines various approaches, including 360-degree evaluations and the use of SMART goals, and discusses the impact of performance management on employee motivation, teamwork, and organizational politics. It contrasts traditional criticisms of performance appraisals with modern practices, such as weekly performance reviews, and identifies key human resource management skills like communication, problem-solving, and multitasking. The report also discusses the importance of aligning individual goals with organizational objectives to achieve both short-term and long-term success, offering practical insights for improving performance management strategies. This report is contributed by a student and is available on Desklib.

Running head: Human resource management
Human resource management

1
Performance Review
It is seen that the argument against performance review was made a long time ago. So, in
this paper we will analyze that performance review is not only linked with appraisals but it is
also a developing process that facilitates good communication, efficiency, effectiveness and also
helps to achieve both long-term and short-term goals (Dhar, 2015). Performance review is a
process of communication between employees and managers to create a proper understanding of
organizational goals with the efforts of both employees and organizations performance.
Managers and employees come together so that negotiation can be made in a performance
agreement (Albrecht et al., 2015).
Performance review takes into consideration proper evaluation of the performance of the
employees so that they can perform with more dedication. Managers of the organization also
observe that the employees are working according to the expectation level of the company
(Griffin and Moorhead, 2011). When behavioral problems or performance issues are identified
in the organizations then it is important to develop a performance improvement plan where
managers will offer coaching and feedback to help the employees to achieve overall objectives
(Atmojo, 2015). It is important for the employees to discuss with the managers so that
development plan can give emphasis on development in a current job but can also enhance the
ability to consider the responsibilities so that the organizational goals can be achieved easily
(Cascio, 2018). So many organizations have taken into consideration proper communication
process with the employees so that the views can be shared properly.
Performance review is done in once or twice a year that helps the managers and
employees to improve and search for the solutions to the issues that hinder the capability of the
employees to attain standards that are described in the agreement of performance. The
approaches that are used to conduct the process of performance review are a 360-degree
evaluation, which is known as a multi-rater approach where feedbacks are taken from customers
and top management (Brewster et al., 2016). Using pre-determined approach to measure the
performance agreement also measures decisions so that the performance can be improved by the
employees and also corrective decisions can be taken or human resource decisions like
promotions, rewards, and transfers. To manage the performance of the company it is important

2
that employees should be clear about goals and strategic mission so that they can complete their
activities in a proper manner (Armstrong and Taylor, 2014).
There are many methods that are used to review the performance of behaviorally based
techniques in which the self-review is done of the employees that help to appraise the managers
of the organization. Self-review analyzes the ability of the employee to conduct the activity of
the organization (Kehoe and Wright, 2013). Next method is rating scale that is done by
considering the behavior of the employees. When the employees conduct the activities the rating
is given by the top management so that they can conduct the activities properly. Next is a result
based method that considers SMART goals or principles like sound, measurable, relevant, and
achievable and also the balanced scorecard (Cameron and Green, 2015).
Figure 4: Source: Vaidyanathan, S. 2014, 360 Degree Performance Appraisal, Research Gate,
Accessed
https://www.researchgate.net/post/How_can_I_implement_a_360_degree_performance_apprais
al_system_in_an_organization (Links to an external site.)
Effective performance management systems should be clear and well communicated so
that performance management policies can be managed. It also helps to ensure the clear
objectives and the standards related to performance so that proper skills can be acquired by the

3
employees. Proper performance management helps to offer proper timely and ongoing activities
to the employees who want to achieve the desired results. If there is no proper performance
management then the negative impact can be analyzed in profits and objectives of the company.
The underperformance of the employees can also be managed by having proper
knowledge of the activities. If the underperformance is managed effectively then the level of
performance in the workplace can be improved and also the employees will feel motivated if
they do not take the burden of the work. The burden of work can only be reduced by proper
distribution of work between the employees of the organization. Negative attitudes of the
employees should also be reduced so that positive outcome can be achieved by the employees
who are given basic tasks of the organization (Mone and London, 2014).
Deming criticized performance appraisal by saying that it nourishes short-term
performance, annihilates long-term planning, builds fear, demolishes teamwork and nourishes
rivalry and organizational politics (Deming and Edwards, 1982). It is also seen that Appraisals
were not designed so that the performance can be improved but it is done to evaluate and rate the
performance of the employees. Performance of the employees is rated in the organization and
according to the rating the employees are given appraisal or increment in their salary. So to
achieve increment in the salary it is important to give good performance and to achieve the
targets in a proper way (Nuttin, 2014). These saying might be true in managing the performance
and it can also achieve success through proper development to overcome the problems. The
management theory and practice are evaluated by Fredrick W. Taylor. The emphasis is on
productivity so that proper implementation of knowledge transfer and monetary incentives can
be identified (Hutchison and Huo, 2017).
Taylor believed that if scientific methods like" one best way" are used then it can easily
carry out the jobs. It gives clarity in the working structure of the employees. If there is clarity in
the activities then the employees can complete it in a fast manner and also with efficiency. He
also divided jobs into many parts and trained workers so that they can perform effectively
towards the assigned tasks. Training helps the employees to understand the work pattern in a
proper manner so that the activities can be conducted smoothly and in a right direction (Dhar,
2015).

4
To enhance motivation it is seen that monetary incentives should be given to the workers
so that production standards can be attained effectively. The employees of the organizations are
not only motivated by offering money but they can also be motivated if basic needs are satisfied.
If basic needs are given by the organization then it can be easy for the employees to work with
dedication towards the assigned activities. Communication also plays a great role so that
teamwork, productivity can be enhanced properly (Miner, 2015). Performance appraisal is a
process that takes place between the management and employees where they can come together
so that objectives can be fixed, the performance can be reviewed and also the employees can be
rewarded by analyzing their performance. Goals of the organization are established by the top
level management and the goals that are set will be communicated to every department so that
the goals can be formed for each department.
Each and every employee will have to approach the top management so that the
performance review can be conducted easily. The employees will be accessed according to their
goals. The meeting related to review is also held at end of the work cycle so that goals that are
achieved can be evaluated effectively. The argument given by Deming against performance
management is that "it nourishes short-term performance, annihilates long-term planning, builds
fear, demolishes teamwork and nourishes rivalry and organizational politics. To analyze this
argument it will be separated into two parts "Nourishes short-term performance annihilates long-
term planning..." By considering MBO approach it is seen that it has been valid. It is seen that
the MBO approach emphasizes on short-term objectives instead of long-term planning. The top
management would consider the methods so that goals can be achieved in less time (Kim, 2014).
For instance: the situation will require more profits so to achieve it the managers will
give training to their employees. Development in the management of the performance should be
managed so that the issues can be overcome by considering balanced scorecard.
The balanced scorecard is related to translate the organizational goals to the performance
objectives, measures, and targets. The scorecard is designed so that the performance objectives
can be achieved and the strategic outcome can be measured. All the objectives no matter long or
short can be considered so that the long-term goals of the organization can be achieved. So by
evaluating the cause and effect, the employees should set the goals that are aligned so that long-
term goals can be achieved (Sparrow et al., 2016).

5
Now the division will be made of "….Builds fear, demolishes teamwork and nourishes rivalry
and organizational politics". In the overall management of the performance, reviews take place
once in a year by taking into consideration the capability of the individual so that the activities
can be conducted smoothly. The conflicts that take place within work teams are very common as
every individual should focus on the objectives. Managers do not have the belief that the
workers who get low rating will be motivated so that they can perform better as punishments are
the most effective tools of motivation. The workers under management with such mentality will
worry about job security and will nervousness will be seen in the individual. In the recent
scenario, performance management has considered the format of performance appraisal as the
companies move towards a team based environment (Pulakos et al., 2015).
Team goals are common and team members conduct the activities as an individual who
collaborates with each other so that team goal can be achieved. Group performance review is
considered so that the objectives related to a team can be set and also the individual goals cannot
be affected.
Teamwork helps the individual to assess the relation by considering the performance and
the benefits achieved. Incentives of the groups like goal sharing and balanced scorecard give
both monetary and non-monetary benefits. As the emphasis is given on the goals of the
individual the organizational politics would be reduced so that harmony at a workplace can be
maintained so that overall goals and objectives can be accomplished (Shields et al., 2015).
Redefinition has taken place by considering performance reviews so that it can be positive and
look forward to encourage the progress rather than enhancing fear that demoralizes the workers.
The aim of the performance review is to attain planning by revising the performance agreement,
learning and development so that independent learning can be encouraged, communication as it
is a two-way channel for the managers and employee to communicate in relation with the job
expectations and work issues.
I am working in an advertisement company it is seen that until 2 years back we have
quarterly performance review, where performance of all the employees of the organization
would be evaluated. However, we noticed that it was adversely impacted the performance of the

6
employees because most employees were seen working hard for only a few day after the review.
Two years back we decided to shift to a weekly performance system where performance review
is done on every Saturday. After the implementation of this idea, improvement is seen in the
working pattern of the employees.
So, human resource management skills that should be employed are Communication that
can help the employees to share their views and feedback in a proper manner. Human resource
professionals have to communicate effectively to the top management so that they can give their
suggestions and get the best advice to conduct the activities that are assigned to them. Next is the
problem-solving skill which should be there for every employee of the organization so that they
can easily conduct the activities of the organization in a correct direction. Multitasking skill
should also be there in the employees of the organization so that they can conduct the activities
when some are not present (Pinto, 2015). Nest skill is related to dual focus that should be there
so that decisions can be taken in a correct way to explain the information of the company. Last
skill that should be there is change management in which the employees should be capable
enough to accept and manage change of the organization. These skills will help the employees to
accomplish the overall objectives of the organization in an effective manner (Marchington et al.,
2016).
Performance management is a process of management that takes into consideration
objective setting, execution, emerging and performance review. This process of management is
accepted universally. By considering many other successful schemes there is also a bound to be
an individual who accepts and also there is some criticism of the process of management. There
is no perfect system. The argument discussed in the paper was made many years ago. With
proper execution of the balanced scorecard, ongoing training and feedback, and the team
performance review had positively overcome those matters. So, in conclusion, it is seen that the
argument that is made against performance management is not true by considering the recent
scenario.

7
References
Albrecht, S.L., Bakker, A.B., Gruman, J.A., Macey, W.H. and Saks, A.M., 2015. Employee
engagement, human resource management practices and competitive advantage: An integrated
approach. Journal of Organizational Effectiveness: People and Performance, 2(1), pp.7-35.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Atmojo, M., 2015. The influence of transformational leadership on job satisfaction,
organizational commitment, and employee performance. International research journal of
business studies, 5(2).
Brewster, C., Houldsworth, E., Sparrow, P. and Vernon, G., 2016. International human resource
management. Kogan Page Publishers.

8
Cameron, E. and Green, M., 2015. Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Deming, W.E. and Edwards, D.W., 1982. Quality, productivity, and competitive position (Vol. 183).
Cambridge, MA: Massachusetts Institute of Technology, Center for advanced engineering study.
Dhar, R.L., 2015. Service quality and the training of employees: The mediating role of
organizational commitment. Tourism Management, 46, pp.419-430.
Dhar, R.L., 2015. The effects of high performance human resource practices on service
innovative behaviour. International Journal of Hospitality Management, 51, pp.67-75.
Griffin, R.W. and Moorhead, G., 2011. Organizational behavior. Cengage Learning.
Hutchison, A. and Huo, M., 2017. Performance Management in New Zealand: Human Resource
Practitioners', Managers', and Employees' Perspectives. New Zealand Journal of Human
Resources Management, 17(1).
Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource practices
on employees’ attitudes and behaviors. Journal of management, 39(2), pp.366-391.
Kim, H.K., 2014. Work-life balance and employees' performance: The mediating role of
affective commitment. Global Business and Management Research, 6(1), p.37.
Marchington, M., Wilkinson, A., Donnelly, R. and Kynighou, A., 2016. Human resource
management at work. Kogan Page Publishers.
Miner, J.B., 2015. Organizational behavior 1: Essential theories of motivation and leadership.
Routledge.
Mone, E.M. and London, M., 2014. Employee engagement through effective performance
management: A practical guide for managers. Routledge.
Nuttin, J., 2014. Future time perspective and motivation: Theory and research method.
Psychology Press.

9
Pinto, J.K., 2015. Project management: achieving competitive advantage. Prentice Hall.
Pulakos, E.D., Hanson, R.M., Arad, S. and Moye, N., 2015. Performance management can be
fixed: An on-the-job experiential learning approach for complex behavior change. Industrial and
Organizational Psychology, 8(1), pp.51-76.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns,
R., O'Leary, P., Robinson, J. and Plimmer, G., 2015. Managing Employee Performance &
Reward: Concepts, Practices, Strategies. Cambridge University Press.
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
Routledge.