Introduction
Employee's performance and quality depend on their satisfaction. Employee satisfaction relates to the attitude that workers have on their job and other workers in the organization. A satisfied employee is one who has positive feelings towards their work and regards their work valuable (Armstrong & Baron, 2005). The satisfaction of employees is essential for the health and performance of the organization, and it is influenced by various factors such as appraisal, ranking, reward, and self-evaluation. Employee's satisfaction increases work morale, which results in high sales volume, profitability, productivity, and strong teamwork. For the employer to determine the effectiveness of its workers, it is required to conduct performance appraisal. Although measuring the wellbeing of workers has not been significant, it is a good practice which makes workers understands their ability and weaknesses.
Performance Appraising
The performance appraisal of any business organization is essential for career development for both the executive and workers themselves. It supports the management in guiding the employees on the route they can follow towards corporate advancement. Performance appraisals also assist the workers in understanding what the business organization expects of them when executing their daily duties. For that matter, it has several effects on employee's performance and quality (Armstrong & Baron, 2005). Useful performance appraisal in an organization is an effective way of improving performance. According to the findings of Kane and Lawler (2009), there are three various functional sections where performance appraisal works effectively. They include administrative, informative, and motivational (Armstrong & Baron, 2005). The role of performance appraisal in executive function is that it facilitates the order in which the employee pay or reward is determined or is increased. It also specifies how authority and responsibilities are ranked following the capability of each employee (Kane & Lawler, 2009). The individual employee with the highest ability takes an executive position while the least take a lower-level management position. The informative function is achieved when the entire appraisal system provides sufficient information to the management and evaluates individual workers based on their strengths and faults while the motivational role is concerned about developing a learning experience that increases working morale of employees who impact organizational performance.
The effective use of performance appraisal helps the management and workers to develop clear goals which they expect to use within a given period. Those who have been apprised receive various benefits such as the discovery of what the employer expects from them and at the same time, they develop the capability to set goals. It also enables the workers to identify their weaknesses and abilities the information that the workers can use to adjust accordingly to achieve both the performance goal of the organization (Fletcher, 2004). Furthermore, it establishes constructive forums where employees give their feedback about the behavior and conduct of others, which can impair the performance of the organization. Based on this, the employer is likely to find a solution to this problem, thus maintaining the organization performance (Armstrong & Baron, 2005). Finally, it gives the employees the power to assist the management in creating operational plans which they can use to enhance the behavior of workers and also ensure that the administration can get better grasps of the company goals and primary priorities.
Performance appraisal is an essential tool that the management can use to motivate the workers to improve performance. Motivated workers have positive attitudes towards their work and the company; therefore, they work extra hard to meet the organizational goals. The employees that work in an organization with clearly defined goals can quickly discover performance challenges and find the solution to their career development. This helps them advance their career in a manner that allows them to receive promotion.
Performance appraisal, especially for supervised staff, is done frequently owing that it affects the organization performance at a great deal. It can be either is done quarterly, annually or after two years. The result of the study showed that performance appraisal offers the employees a chance to discover their training needs, thus allowing them to acquire necessary skills that overcome their weaknesses (Kavussi Shal. Masud, 1999). As a result, the organization meets its performance targets, improve performance of poor performers, and improve the work efficiency of all the employees through proper planning and goal setting and to improve the decision-making process of managers. Furthermore, performance appraisal also enables workers to share the goals of the business organization and also enlighten the workers on team working skills. When appraising employee's performance, the result showed that most managers or organizations use the graphic rating scale. The result indicates those performance appraisals is capable of enhancing cooperativeness of workers in the workplace and also ensure that the employees can change their behavior in such a way that fosters organization performance and productivity (Armstrong & Baron, 2005). In the same study, performance appraisal also motivates the workers and improves productivity at a greater extent. It enhances time management of the business organization and also helps in the identification of the organization needs accurately. Performance appraisal also ensures that workers understand their expectations and also access the feedback from other members, which can be used to enhance their performance.
In the same study, the result showed that performance appraisal also ensures that the organization performs better. It is capable of directing and monitoring the behavior and conduct of workers in a manner that enhances the performance of the business organization and the staff Krattenmaker, 2009). Performance appraisal also improves the relationship between various employees and employee-employer relationship, thus increases the interpersonal relationship, fosters integration, and promotes team working spirit and ensures that the employees can work without supervision. It also encourages workers to embrace changing the environment, and by developing employee development plan, the employees are capable of enhancing their future career which is essential in increasing their productivity, increase their knowledge about their job, proper utilization of the organizational resources and promote the delivery of quality results to customers.
Other researchers indicate that performance appraisal is essential in determining employee rewards, which is one of the tools used in motivating workers (Armstrong & Baron, 2005). Because it is critical for setting the development for an individual employee, support in developing a work plan and meeting the particular target, managers can easily make use of it to make the well-informed decision necessary for promoting and assigning work to employees based on relevant facts. It also helps in creating SMART objectives after the appraisal, which is essential in improving productivity.
Performance Ranking
Performance ranking is a way of evaluating workers, which sorts a given portion of workers into various classes based on their performance as compared to their colleagues. It helps in the discovery of top performers, who have been rewarded and eliminates poor performers and embraces those who have been put in the improvement plan (Armstrong, 2012). Performance ranking is used in identifying top performers in the organization and the process, ensure that high performers are rewarded accordingly, thus encouraging other workers to improve. This, therefore, results in an increased performance of both the company and employees because each worker strives to appear in the category of top performers. Managers only ensure that they focus on workers with high potential and form incentives that can be used to motivate them to stay with the organization (Armstrong, 2012). Poor performers are weeded out from the organization and the effect of this ensure that all the workers work extra hard to perform well in the organization.
Performance ranking is also essential in improving organizational productivity and profitability. In most cases, ten percent of the workers who contribute nothing or very little to the organization are removed from the workplace. The quality of work improves significantly because there is no one to provide quality work. Performance ranking allows organizations to eliminate employees who add no value to it, thus creating a space for people with talent to occupy top positions (Armstrong & Baron, 2005). This increase working morale for people with skills but are ranked low in the organization, thus increase their work performance. The same process also ensures that they develop positive attitudes towards their work, and this gives them the desire to work more and deliver quality services to clients as the employer recognizes their effort and contribution. The employees who appear in the top list are also rewarded accordingly according to their energy and participation. The kind of reward they receive motivates them to repeat their performance in the future. As a result, there is high productivity and profitability because there is no poor performers and the elimination of workers who contribute insignificantly to the organization.
Performance ranking also forces the management to acknowledge their behavior and what they contribute towards the company (Armstrong, 2012). When carrying out performance ranking, the managers have no obligation not to think about their roles which they have failed to perform r have performed excellently. The managers must respond to some questions which make the employer or investors understand their behavior, which can either indicate why the organization is performing well or poorly. The response of managers can only help top performers who have been forced out due to low performance. This condition, therefore, force workers to work hard so that the organization can retain them and ensure they continue in the workplace for long
Because the performance ranking create a competing work environment instead of teamwork and this makes the employees engage in unethical behaviors that can support them defeat others to retain their work position and also get additional incentive (Condrey, 2010). The involvement of workers in unethical behavior is also likely to reduce the performance of the organization and also allow the organization to retain poor performers who cannot improve the organization performance (Armstrong & Baron, 2005). The organization performance is likely to reduce or the individual performance because the employees are likely to avoid sharing, collaborating or helping their fellow worker but would like to cheat, hoard resources or steal some ideas from others to be regarded as a top performer.
The ranking is also one of the evaluation tools that give stress to workers, and this has an impact on their performance. The condition that performance ranking creates that all the workers that appear least are eliminated from employment usually stress the employees because they are not sure of the kind of evaluation result they are likely to receive (Armstrong, 2012). The employees also get demoralized when they realize that the names of their colleagues fall within the percentage that is terminated from work due to poor performance. The employees are too afraid of the next result of the evaluation, and this may re...
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