Human resource management has administered to bring evolutionary changes and positive influences in the work place – specially giving importance on employee performance appraisal. Employee performance appraisal has just as well been introduced by the modern pioneers of time and motion studies in the field of human resource management. It has not been practiced in the fields of business and organizational work for too long in a well-defined manner, and is thus a contemporary element of work place culture.

Looking at the historical aspects of performance appraisal, we will see that it initiated near the times of Second World War. A hypothesis researched by Dulewics in 1989 suggested that it is a basic human tendency to make judgments about the work of others and our self. From this hypothesis it was concluded that performance evaluation is inevitable and is indeed a natural process.

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There is a need for a well-structured appraisal system so that people can critically evaluate, judge and remark the working and efforts of a colleague or sub ordinate in a well-defined and formal way. If this is not present then there is a great chance that the proper functioning and running of an organization will be disturbed by the improper remarks. Moral, motivational and official related problems can arise if the remarks and judgment given on an employee are judgmental rather than being fair, precise and legal.

The beginning of employee performance appraisal started with a simple element of praising the employee by providing bonus in the previous income. The employee performance appraisal was based on analyzing the wage of the employees with the work that is being done by them. This system was mechanical in a way that it was based on the material and concrete outcomes that came out by the working of an employee. Wage was increased if the work done by the employee met the expectations of the head or manager in charge. This system failed many times as the only outcome of an employee’s hard work was either an increase in the income or a cut in the paycheck.

Earlier researches understood that different people have different levels of motivation and self-initiative characteristics, even if they are doing the same job or task, even if the money is being given to them in same amount as each other. These researches lead on to other advanced researches which proved and emphasized that though money and income rate does matter, there are other factors as well which greatly influence the performance level and motivation of an employee.

Characteristics and boosters such as high morale and self-confidence have major impact on the work and personality of an employee. This brought forward a change in paradigm of working environment and appraising performances and then came forth the current setup of employee performance appraisal. The modern form of performance appraisal is a well-structured and defined interview between the employee and the supervisor.

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In this interview the strengths, weaknesses, learning opportunities and the development of skills in order to enhance the work of the employee are discussed and observed. In many organizations, this system is used in order to evaluate and find which employees should get an increase in pay, a bonus or a promotion. In contrast to that these same employee performance appraisal are used to evaluate those workers as well who are lacking behind and need counseling, training or in severe situations decrease in pay, demotion or dismissal from the organization.

A research proved that as evident the employee getting the appraisal is contented and inspired by the rewards and praise associated, the person or in charge that makes the appraisal also feels satisfied. Hence, it shows that the result of the appraisal and the awards given are associated with each other.

Another research says that having lighthearted communication at the time of the appraisal is a basic element of responsibility that management needs to follow in order to really inspire and motivate an employee. Having random reviews on the salary and separate wage system disintegrate the consistency and working of an organization.

Employee performance appraisal has profound effect on the motivation level and satisfaction from the job, of the employee. A performance appraisal can have both positive and negative results. It is even in its worst-case scenario very important as it keeps the employees updated about their work.

It also shows to the employees that their hard work is recognized by the organization, and the organization is concerned about the growth and performance of each employee. Such revelation has positive result on an employee and the sense of commitment and belonging increases with the organization in which the employee is a part of.

Having employee performance appraisal at regular intervals ensure commitment and understanding between the organization and its employees. It can greatly affect the turnout rates of companies as well.

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