Business Studies Paper on Performance Appraisal

Performance Appraisal

Organizations conduct performance appraisals to evaluate the output of employees and determine the appropriate amount of salary as compensation for their effort. In the article “Eliminating Performance Appraisals”, the author views the process as “a redundant bureaucratic troublesome activity” that wastes time, creates a gap between the management and employees, and originates conflicts between employees (Lawler, 2014). However, performance appraisal remains a key tool of motivating employees by evaluating if their performance is in line with the organizational goals. The process involves consistent documentation of employees’ work, which enables the organization to analyze their effectiveness. In addition, an employee provides a feedback on the workplace expectations and goals that raise motivation. Conducting appraisals within an organization maintains communication between the management and employees for smooth operation.

The workplace dynamics is constantly changing, which necessitates adjustments to the performance appraisal tool. There are solutions towards good performance appraisal. First, proper communication on organizational goals at the onset of employee recruitment ensures that employees know what to do (Mayhew n. d.). The employees and managers can receive training after recruitment to be equipped with necessary skills for the position. Bias results in conflicts between the employees and management after conducting appraisals. Thus, initiating a clear unbiased system will enhance workplace relationships and boost teamwork (Heathfield, 2010). Thirdly, integrating performance appraisal into the workplace routine will decrease the spent time and avoid surprise reviews. Proper reporting within the organization helps identify good managers and employees who can receive rewards for their efforts (Jacoby, 2017). Conducting annual or biannual performance appraisal ensures that employees and managers work effectively on a daily basis, increasing productivity. Finally, the method used should suit the specific needs of an organization and meet the set expectations without disrupting the workplace routine.




Heathfield, S. M. (2010, August 1). Want 5 tips to help managers improve performance appraisals? The Balance Careers. Retrieved from

Jacoby, M. (2017). 12 Ways to improve performance reviews that actually change. Huffpost. Retrieved from

Lawler, E. E. III. (2014). Eliminating performance appraisals. Forbes. Retrieved from

Mayhew, R. (n.d.). Performance appraisal problems and solutions. Small Retrieved from