How Can Personnel Performance Evaluation Systems Be Improved?

 

The employment environment, nowadays, is becoming increasingly competitive (Thurston et al., 2012). Organizations are confronted with new challenges concerning their human resource management (Bogaert & Vloeberghs, 2005).

Organizations are faced with fast-paced change and the need to ensure ongoing change intervention success (Fuchs & Prouska, 2014). Potential employees not only become more and more diverse with respect to socio-demographic characteristics but also with respect to their needs and expectations (Berman, 2002).

Personnel management is vitally important to the maintenance and preservation of the administrative state and its democratic institutions (Stivers & Hummel, 2007). Appraisal of employee performance is among the most controversial management practices (Anisseh et al., 2011). Performance evaluation processes are situated in an organizational context (Miller et al., 2014).

The long-term viability of a business organization depends on its ability to evaluate the performance of the employees and to examine the contribution of its personnel in achieving the assessed goals (Grigoroudis & Zopounidis, 2012). The importance of evaluating an Employee Assistance Program (EAP) cannot be overestimated (Sithole & Khorombi, 2009).

Performance evaluation is critically essential for the effective management of the human resource of an organization and the evaluation of staff that helps develop individuals, improve organizational performance, and feed into business planning (Ahmed et al., 2013). Performance appraisals (PAs) are a reality in organizations of all sizes and types (Clausen et al., 2008).

Employers worry about whether employees will devote sufficient effort to work, and employees are concerned about whether employers will compensate them appropriately (Fisher et al., 2005). The evaluation results provide the basis for the human resource management department to develop a staff satisfaction promotion strategy (Li & Wang, 2014). Semantic technologies provide to human resource management issues an integrated approach to assess both employee performance and learning outcomes as a result of competence evaluation (Fuchs & Prouska, 2014).

Every day more organizations recognize that their people are a source of competitive advantage (Cabrera & Cabrera, 2003). Perceptions of effectiveness are positively related to job attitudes (i.e., job satisfaction, engagement, perceived organizational support; Wilson & Narayan, 2016).

While individual characteristics, such as personality and core self-evaluation, are good predictors of job-related attitudes and performance, they cannot be acted on in a human resource development (HRD) capacity (Thurston et al., 2012). PA has been the focus of considerable research for almost a century (DeNisi & Pritchard, 2006). The sheer scale and speed of the shift of payment system from time-based salaries to performance-related pay (PRP) in the British public services provides a unique opportunity to test the effects of incentive pay schemes (Marsden et al., 2000). PA is a western management concept that is meant to improve individual and, concomitantly, organizational performance (Bai & Bennington, 2005).

Employee performance evaluation study finds that although there is clarity around the performance criteria on which public employees in welfare offices are evaluated, the measures are not linked to one of the principal goals of welfare reform—“welfare-to-work”: moving people off welfare and into jobs (Riccucci & Lurie, 2001). The mathematical evaluation shows that the correct evaluation of employees by the system effectively motivates employees in favor of the industry (Kaur & Sood, 2017).

Change is frequently mentioned as a defining quality of the new workplace and, in turn, employment relationships (Chaudhry et al., 2009). Employee compensation moderated the relationship between the types of employee participation and employee retention (Khalid & Nawab, 2018).

HRD can play a key role in helping employees foster social capital, leading to employee voice in the organization (Cumberland et al., 2018). Employers every year struggle to find just and fair ways to identify the best performers as it is a quite subjective task (Mittal et al., 2009). Multidimensional constructs of trust and service climate were developed using the literature in the trust and service management domains (Chathoth et al., 2007).

An important issue discussed is how employers can ensure the anonymity of employees in surveys used for management and human resources (HR) analytics (Frederiksen, 2017). Strategic compensation theory argues that rewards should be used to encourage employee activities that support organizational goals, but reward strategies often have confounding effects on employee attitudes and behaviors (Howard & Dougherty, 2004).

Employee evaluation is one of the soft topics that play a chief role in the total efficiency of human resource management (Nobari et al., 2019). Research support results in a reform process that minimizes “deadly combinations” and maximizes “powerful connections” rather than simply transplanting personnel practices from the private sector onto the public sector (Huff, 2011).

We find that pay knowledge has an independent impact on organizational outcomes, rather than being mediated through pay satisfaction (Sweins et al., 2009). The model for training and managing scientific personnel tends to change (Petroni et al., 2012). The findings of the investigation suggest that sales managers were more likely to make internal attributions for failure when the salesperson had a poor, rather than a good, work history and external attributions when the salesperson had a good, rather than a poor, work history (Dubinsky et al., 1989).

Personnel management is rooted in the Tayloristic concept and has to be revisited before it can join the changing conditions and contribute to these fundamental changes (Sluijs et al., 1991). Surveys of government personnel have shown that they are much more likely than their counterparts in business firms to say that it is hard to fire a poor performer, to raise the pay of a good performer, and to base promotion on performance (Jin & Rainey, 2020).

                                                   Source : SAGE Journals 

If the actual personnel evaluation scores are found to have an effect, these results will suggest that objective evaluation, apart from assessment effectiveness measurement tools, is important in reviewing the appropriateness of the personnel evaluation system rather than the factorial structure of the evaluation effectiveness. In this study, the personnel evaluation score given by the person’s direct supervisor was used as an indicator, as an objective evaluation concept. The evaluation effectiveness factor is shown in Figure 1.

References

Ahmed, I., Sultana, I., Paul, S. K., Azeem, A. (2013). Employee performance evaluation: A fuzzy approach. International Journal of Productivity and Performance Management, 62(7), 718–734.

Clausen, T. S., Jones, K. T., Rich, J. S. (2008). Appraising employee performance evaluation systems. CPA Journal, 78(2), 64–67.

Grigoroudis, E., Zopounidis, C. (2012). Developing an employee evaluation management system: The case of a healthcare organization. Operational Research, 12(1), 83–106

Stivers, C., Hummel, R. P. (2007). Personnel management: Politics, administration, and a passion for anonymity. Public Administration Review, 67(6), 1010–1017.

Thurston, P. W., D’Abate, C. P., Eddy, E. R. (2012). Mentoring as an HRD approach: Effects on employee attitudes and contributions independent of core self-evaluation. Human Resource Development Quarterly, 23(2), 139–165