Performances management play a vital role in economic activities in different sectors in

every organization. Institutional success depends on employee performance and

accomplishment of the goals of the organization. To achieve the best output from the

employee, their performance should be managed by the managers through well-accepted

performance management system. It is an important issue to analyse performance

management because it is increasingly carried out by managers that is one of the most

difficult tasks to perform and it has a critical role to play in organisational performance,

which is widespread and vital to all employees.

In the Performance management system through improvement of individual performance,

overall corporate performance can be improved. For that purpose, performance appraisal is

important in the organization.

The traditional methods of performance appraisal is known by a study conducted by Boswell

and Boudreau (2000) (cited in Chubb et al, 2011) showed two functions of performance

appraisal are important one is evaluation functions for salary administration, promotion

decisions, retention/termination decisions, recognition of individual performance and

identification of poor performance and another one is developmental functions for

identification of individual training needs, providing performance feedback, determining

transfers and attachments, identification of individual strengths and weaknesses.

Baron (2004) claims that the focus of performance management is on elements such as

recognition, constructive feedback, personal development and career opportunities. However,

there will always be an inevitable tension within career management, which has to satisfy

both the interests of the organization and those of the employee. Individuals may demand a

career where there is scope for development and progression, ‘whilst organizations will need

to ensure they have the right people in the right jobs and are building a talent pool for the

future’ (CIPD, 2003).

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Adobe, Accenture and Deloitte recently realizing that the old way of conducting performance

appraisals is intensely defected and unsuccessful.

These companies argues that current performance management approach drives neither

employee engagement nor high performance. (Buckingham & Goodall 2015, p42)

They recently abandoned traditional performance management systems and they

introduce ‘Check-in approach, which turned around a three-tiered framework that is

Expectations: Agreed, pathway, and evaluation flawless prospects/aims (what plus how)

and explain duties, tasks, and attainment standards regularly during the year.

Feedback: Provide and accept continuing feedback and schooling on a regular and

appropriate way to identify and talk for improvement performance in terms of prospects.

Growth: Deliver support to improve and rise talents, potential abilities and skills in

accordance with organizational requirements along with the alignment to the strategic policy

of the business. (Hinds et al. 2014, p5)

In the survey conducted by Deloitte had found that more than half of the executives did not

consider their employee appraisal structures herd employee performance or engagement.

According to another study, six percent of Fortune 500 companies have already switched

outdated yearly appraisal of performance standings, and the figure is increasing.

However, these companies implement new systems, which in terms of traditional systems is:

 Emphasis on the employee’s individual role: In this way one employee is not rank

or compare the performance to other employee

 Frequently convey feedback: These companies implement regular feedback system

rather than a single appraisal once a year. For instance, Deloitte has executed weekly

check-ins with team leaders to help their performance.

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  Less time involve completing. In this system, they provide simple way to answering

four questions, out of which two involves yes or no answers.

 Change from concentrating on the previous to directing on the forthcoming. In

reviewing the employee’s performance once in a year, this system emphasis on

regular appraisals to support employees go onward with their professions rather than

turn back on activities or failures.

 Receive roughly the subjectivity out of the practice: It is a primary problem in

typical performance appraisals is that an assessor’s assessment of an employee’s skills

states further about the assessor than the employee, for example, what a manager
think of the employee. For that reason, these companies have changed their questions

to ask what a manager would do with an employee such as to promote them,

incentivise them.

 Emphasis on employee management rather than to an effort on driving employee

performance. A manager can regularly provide more opportunities to support an

employee towards his or her best performance through check-ins and appraisals.

 Transfer the performance from demanding for the simplest view to the

richest. Several appraisal structures in the earlier were aimed to try to shorten

employee performance rating or ranking down to a single number. Nevertheless, the

new type is more concentrating a richer; the distinction point is that every employee
can facilitate better performance.

In this study it is shown that this method becomes more effective because it generate

greater employee performance and individuals are no longer stay with what

materialized in the earlier but emphasis in what way to develop in upcoming. (Marr,
B. 2015)

The most dominant factor is performance appraisal, which is related to Pay-for-performance.

It is important to ascertain individual performance of the employee to the performance

management field to execute a successful performance appraisal. Because Lawler (2003,

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p397) described that performance management will be more effective when rewards are tied

to the consequence of performance appraisals. In the appraisal, process key sections of

appraisal need to execute are measurement, feedback, positive reinforcement, open exchange

of views and agreement. This process will talk performance matters at the appropriate time

with adequate support and established goals. The organization should provide reasonable

outcome of the appraisal process. Therefore, Individual performance should implement real

performance appraisal process by complying with this segments, such as doing an all-side

and careful measurement, providing an on-going feedback after each performance and

making a frank exchange of views about how appraises can improve their performance.

Moreover, there should also give a specific feedback outcome of appraisal. The fact is that,

this process not only can decrease the demission rate, but also can attract employees of other

companies.

In the high-tech companies as well as constructions firm are not suitable for these performance

appraisal system

As such, in performance appraisal system there is no ‘one system suits to all’. Nevertheless, this

does not means that this is the same to all organization. There should be an appropriate system

which differ from company to company depends on the situation, position, environment as well

as the nature of the business. One company’s performance appraisal system may not fit with

other business because of their differences, so it is said that other company may not suit the

adobe deloitte system to abandon performance review system.

It is difficult to say that as the company Adobe, Accenture and Deloitte have recently

abandoned traditional performance management systems but can other company take the

same decision. Because there are lots of organization and there are lots of different

businesses, for that reason it would not suit for all. For example, in teaching profession,

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Defence, transport sector, Air force, Army sector as well as constructions sector that are not

the similar to these companies can abandon the traditional performance system.

It should be keep in mind that it has an involuntarily affect to the employee motivation and

output as well as mutilation to the prospective candidates by eliminating performance

appraisals.

In the article by Future Work Centre (2015) emphasised that the performance appraisal can

influence employee performance, supervisor-subordinate interactions and tumble objectives –

positively or negatively.

Employee performance was far more nuanced than the annual performance reviews

presumed; it was not as simple as pigeonholing people into three categories where people

may exceed expectations in one area and meet expectations in another. (Hinds et al. 2014, p4)

In the book, Armstrong (2015) suggests there is no such thing as ‘best practise

performance management’: what is best depends on the circumstances,

especially the culture of the organisation

Lotich (2014) stated that Employees, as well as managers perceive performance

appraisal exist unsuccessful and a widespread waste of time.

It is found that some organization perform their performance appraisal system

in a way that they are not merely considered to miscarry, also generate an

adverse knowledge for equally to the superior as well as the junior. However,

successful organizations recognize the significance of combining performance

appraisals into their performance management process and strategy.

Benefits of performance appraisals:

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Employee performance is determined over a specific period.

 Supervisor can come across and confer performance structure of the

employee.
 Supervisor provide the response about their performance and deliberate
how clearly the employee objectives can be performed.

Disadvantages of performance appraisals:

 Negative experience can be produced if not properly executed.

 The method centred on human assessment and are focus on reporter oversight and
prejudices.
 If not execute properly it can be waste of time.
 Those who involve in the performance appraisals are followed stressful
environment.

Organization should consider the steps to take before promote plan for succession, getting

appraisals in place.

Therefore, performance appraisal implementation depends on line managers’ capabilities,

organizational culture, teamwork as well as types of business. This whole issue can be align

with the strategic human resource management system.

It is a difficult situation, particularly for performance related pay. In addition, it is an unclear

tasks for an organization to measure the employees performance standard without precise

performance rankings. In fact, leaving the performance ranking can appear emphatic

frightening as existence of rating is even now challenging enough. Moreover, release from

performance rankings is maybe not appropriate for everyone.

Indeed, several of our human resources leadership panellists agreed that bringing back

forced rankings at Yahoo! was probably "the right decision for Yahoo! right now." (Partner,

B., G. 2014)

For moving away from performance appraisals human resource manager should consider

the following things:

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1. Cultural consideration: some companies abandon performance ratings because they need

collective environment to accomplish the job where performance rating constitute bad effect

between employees. In the article by (Partner, B., G. 2014) described that Companies that

live on the bleeding edge of innovation require teams of brilliant people who have incentives

to share ideas rather than protect their tur as well as seeks to create an innovation first

environment, dropping performance ratings could make sense. Conversely, if companies

faces a tough turnaround situation where difficult staffing decisions lie around the corner,

performance ratings could be a critically important tool

2. Manager Decision Needs Manager Training

Performance appraisal abandoning may depends the managers who have the right coaching

in performance management and have knowledge of assigning compensation pools

strategically. However, it may not happen for young managers or new companies in given

roles. For that reason, removing the performance appraisals without appropriate training

could be unsuccessful. So it is necessary to give proper training to the managers on how

handle performance meeting and reward decisions.

3. Goals setting and count:

A good number of companies that abolish performance ratings also reconfigure their

performance conversations to tackle forward-looking goals. They do so in favour of looking

backwards at past successes and failures, which is a commonplace tactic in most

performance review discussions. In growth-oriented companies, most employees want to

know what they are aiming for, and good goalsetting is critical for their ongoing motivation.

Measuring performance against these goals, rather than a zero-sum game of performance

ratings, becomes the benchmark for determining bonus payouts, long-term incentive awards

and promotion opportunities. In the absence of performance ratings, creating and tracking

employee goals becomes more important than ever.

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