Factors Affecting Performance Evaluation Appraisal

  1. Organizational Leadership: The leadership at the top determines to a large extent the loyalty and commitment of employees to the goals of the organization. Effective top leadership orients and motivates the entire organization for better performance.
  2. Organizational Structure: There are two types of organization structure; organistic and mechanistic. Organistic structures tend to be flexible. Such organizations change themselves very fast to cope with the present changing environment. This dynamism makes such structure readily responsive structures of all kinds. Mechanistic structures are very rigid and are designed to carry out a nearly fixed strategy in a relative stable environment. Initiative, drive and imagination do not receive encouragement in a mechanism structure.
  3. Environmental Constraints: Various environmental constraints affect the performance of an employee. For example, the quality of new material may affect the productivity and performance of an employee. If the selection of material and other things are done at the higher levels in the organization, the performance appraisal of the worker wouldn’t be affected.
  4. Interdependence of Sub-Systems: Every subsystem of a larger organizational system is interdependent. The malfunctioning of a subsystem affects the subsystem functioning. Because of this interdependence of subsystem, it is suggested that the performance appraisal should start from the apex. This leads to more systematic and logical case and effect tracing of performance at all levels within the organization.

Causes of Performance Evaluation Regarding as an Important component

Performance evaluation regarding as an important component of HRM because of the following heads:
  • To identify misplacing employees so that suitable remedial action may be taken.
  • To find out the potential of employees for promotion and development.
  • To judge whether employees are performing at the acceptable level.
  • To identify the strength and weaknesses of individual so that timely steps may be taken to improve the quality of personnel.
  • To provide a record of each employee’s performance for the purpose of incentive pay and rewards.
  • To focus attention of the effectiveness of the organization and to recognize individual achievements.
  • To provide feedback information about the level of achievement and behavior of subordinate. This information helps to review the performance of the subordinate rectifying performance deficiencies and to set new standards of work if necessary.

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