A process for Organizational Success
In an increasingly complex business environment where issues of increased productivity, coupled with a diminishing workforce are of major importance, organizations are increasingly looking to the Performance Review process to provide answers to some of their concerns. (A selection of various Performance Review forms can be found under the Forms section of this web site -subscriber access only)
The performance review process is an essential tool used by organizations to assist in developing and remunerating employees and for reviewing; employment /recruitment policy and procedure, accuracy and effectiveness of job descriptions and assessing training requirements as well as providing the means and measurement of the attainment of organizational goals.
To ensure fairness and equity in the determination of salary and development needs the organization needs to ensure an appropriate and effective appraisal system is implemented. Additionally employees need to understand and agree to the required performance standards for their position and to expect feedback. Additionally the analysis obtained from the review process can be used to assess not only whether previous training was effective, but also to determine future training and development requirements. Such analysis will assist the organization to coordinate training, transfers and promotions and allows for the continued development of its human resources as a means to achieving the organization's overall goals and objectives.
Feedback to an employee is also important for their own development and self-esteem. Employees require feedback so they can be made aware of their own strengths and weaknesses, have their concerns for the future reassured and be given recognition for their recent efforts.
In order to construct appropriate and relevant performance standards, against which the employee can be measured, job descriptions must be implemented and continuously updated along with job goals. Performance reviews will then also assist in assessing the reliability of the organization's initial selection and recruitment process.
The performance review process can also help to ensure the principles of EEO are adhered to as they are reflected in general recruitment practices and in promotion and compensation activities. Obviously any review process needs to be designed in a format that eliminates the potential for discrimination and accordingly managers will need training in appraising and reviewing an individual's performance fairly and equitably.
Performance reviews may also be used for collecting data for other strategic issues such as monitoring trends, assessing staffing needs and developing manpower plans and therefore provides information for budgeting, HR planning and production scheduling.
However the validity of the review process will determine the worth/value of information gathered.
In conclusion it can be seen that the performance review process is an important and integral facet of the organizations development by;
- Providing the means of auditing recruitment and selection procedures
- Ensuring compliance with relevant legislation including EEO principals
- Providing a process for rating an employees performance for the purpose of
reviewing remuneration
- Providing a gauge of the effectiveness of previous training and the assessment of future training and development needs, and
- Providing information to assist in strategic human resource planning.
The performance review process effectively then ties in together many of the other HR programmes conducted and can therefore provide an influence on the organizations overall success.
