Appraisal System Linkage with Organizational Performance

Appraisal System Linkage with Organizational Performance

Why organizations are concerned about aligning employee performance through performance appraisal method with strategic objectives of the organization.

In the fastest-growing era, organizations have moved on from traditional appraisal systems to more initiative appraisal methods, which connect employee performance to organizational performance. In the past, organizations have faced misalignment of their goals with employee engagement. So now, organizations have learned the importance of employee engagement with the strategic objectives of the organization through an effective performance appraisal system. This new process includes the following steps:

1. Developing corporate goals.

2. Cascade the goals through the organization.

By cascading goals, managers are helping employees understand:   

• The activities the organization is focusing its attention on

• How their work will contribute to the successful achievement of the goals

• How they will exhibit behaviours that support the corporate values

• The importance and impact their individual work has on the bottom line

This action is enabling employees to make the connection between their goals, the department goals, and the overall corporate goals. (University, May-23,2017)

3. Managing goals and employee performance

In this step, employee performance is linked with the organizational goals which result in useful measures such as improved quality, quantity, timeliness, productivity, financial, cost-effectiveness.

Management should keep a track of employee performance and should evaluate it on a regular basis. Having a systemic process provides employees and management with the understanding of potential talent gaps and provides an avenue for linking development plans to fill specific skill or performance gaps. This assists the organization with workforce planning, as well as employee engagement. Both of these can have a positive impact on the organizations bottom line. This entire performance management process serves as the foundation of employee personal and professional growth, along with organizational growth. (University, May-23,2017)

Now, I would like to discuss the key outcomes derived from the linkage of employee engagement with performance appraisal:

1. Enhanced employee individual skills, knowledge, and attributes.

2. Clear job specifications, procedures, and criteria.

3. Improved organization systems, practices, and routines to achieve organizational objectives. (Meera Alagaraja Brad Shuck, 2015)

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