Critical Essay: Performance Appraisals in the Public Sector

November 27, 2012

Michael Saylor University at Texas at Dallas PA6345 Fall 2012

Performance appraisals programs are a tool that should ensure consistent, effective, accurate, repeatable and documented assessments of organizational and individual employee performance levels. It is the responsibility of executive management, unit / line management, and human resources management to conduct performance appraisals and ensure that the organization is operating as effectively and efficiently as possible. Designing the appraisal framework and approach must be catered to the organization and focus on standards and assessment criteria specific to the organization. Additionally, managers should further refine their individual approach to appraising performance in order determine how best to use the results (e.g. productivity, behavior, and skills improvement) to influence motivation and performance; including training, pay increases, and promotions. If performance appraisals are not consistently and effectively planned and/or conducted, they may include inaccurate results that do not reflect an employees true performance. Additionally, there may be organizational limitations and politics that a manager should be aware of that could impact or influence an employees long-term motivation and productivity.

Problems with Accuracy The performance appraisal process includes various inputs and implications depending on the job and the organization. Managers in public organizations are not always aware of or included in the big picture (changes to organizational strategy, personnel management, etc.) to ensure the most efficient use of organizational resources. As a result, managers attempt to select the appropriate criteria to be assessed according to their understanding of organizational needs, including work quality, productivity, and behavior.

In some organizations it may be difficult to measure quality and productivity; in others the work may not even be the direct result of a single employee; for example, an employee may function as part of an operational team whose performance is dependent upon the work of others. Alternatively, employee behavior and work ethic may serve as an input to assessing performance. Managers must, however, realize that this may not be enough to determine how the employee supports and achieves the objectives and goals of the organization. As a result and in this case, the manager should include a narrative that supports the appraisal results and describes the events, activities, and details related to the employees performance.

Inaccurate or poorly conducted appraisals may lead to short-term and long-term problems, including employee motivation, undesirable behavior, and attrition. As an example, employees who think that their appraisals were not accurate or conducted similar to their coworkers may feel alienated and/or unmotivated to work. According to the equity theory (Berman, Bowman, et. al, 2012, p.243), employees believe that the rewards for their work should be proportional to the effort they put in, and that workers with equal inputs should receive

similar rewards. Furthermore, if an employee perceives success at attaining a reward that they value, they are more likely to put forth the effort to achieve organizational goals. In satisfying this requirement, employees will be more loyal and involved, as long as managers make sure that employees performing at the same level are rewarded equally.

Alternatives Defining appraisal criteria must include considerations for, among other things, acceptability to management and employees; costs and time necessary to implement; and the short and long-term consequences / impact.

One alternative would be an agreement between managers and employees based on the concept of the psychological contract (Berman, Bowman, et. al, 2012, p.228). This concept describes the situation where supervisors have expectations of employees, and employees in turn have expectations of their supervisors. The communication of these expectations is key to developing and maintaining a positive and productive relationship. As a result, employees are given the opportunity to appraise their managers and therefor feel that they have the chance to share their thoughts and feedback in order to help improve the organization. There may be additional time and cost considerations with this approach, but a likely positive result could be improved employee morale and productivity.

Another alternative could be a comparison between the organizations appraisal program and the practices and programs for conducting performance appraisals at other similar organizations. Understanding that there is not one best method for conducting appraisals,

managers should research other frameworks of designing, conducting, and finalizing the employee appraisal program used by other organizations with the same number of employees, operations, and other similarities. In additional to potentially finding a more appropriate and effective appraisal program for employees, management may be able to save time and resources by using an already developed program instead of developing a new one from scratch.

Summary Overall, an effective appraisal program should measure relevant aspects of employee performance in a consistent and efficient manner. With regard to the equity theory, employees should feel that they are being evaluated fairly in order to have access to opportunities for advancement (rewards including promotions, pay increases, etc.). As a result, a combination of the alternatives listed above, and potentially others, should be considered by managers in order to give employees the opportunity to evaluate their managers, help increase their sense of equity and engagement in the organization, and feel equal among their coworkers. The program should have defined criteria for employee improvement (training) and advancement (career planning). Finally, in the event that the organization does not have and/or could not identify a suitable appraisal program, managers should capitalize on the opportunity to involve employees in the development of the appraisal program. This final approach would help set more realistic expectations and performance assessment criteria so that an accurate appraisal program can be implemented.