Effective Employee Performance: The Common Challenges and Problems

Performance Management and Performance Appraisal
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Introduction
Effective human resource management requires two important systems that are performance management and performance appraisal. This essay analyzes performance management describing the difference between performance management and performance appraisal. The second section of the essay examines some of the drivers of performance management and performance appraisal. Section three of the essay is about the claims made for performance management. The following sections examine some of the employer expectation in relation to performance management. In section five, the essay describes the stages and important elements of performance management and performance appraisal.
The essay also highlights the principle approaches to individual performance focusing on the three different approaches including behavioural approach, the output/results-based approaches and the 360-degree appraisal approach. The following sections involves important characteristics of an effective appraisal system and the challenges that organizations encounter when delivering employee performance appraisal. In conclusion, the essay will present how HR functions assist in effective performance appraisal.
Performance Management and Performance Appraisal
Performance management is defined as an integrated strategic approach to delivering sustainable success to the organization by improving individual performance. Performance management is a system that helps in identifying ways to achieve the set organizational goals by constantly assessing and providing feedback that results in improved employee performance. Unlike performance appraisal, performance management is an ongoing assessment of employee aimed at matching their goals to the organization's goals Armstrong (2009, p 618).
Performance appraisal is commonly referred to as performance evaluation and entails tools used by the management to measure the effectiveness of its employee’s performance. Armstrong & Baron (2005, p.621) state that performance appraisal is assumed to be an annual activity, however to effectively monitor individual performance many organizations prefer engaging employees in regular feedback compared to holding annual meetings to assess performance.
Unlike performance management, which is a dynamic system that uses performance evaluation tools and incorporates other elements to form part of performance management cycle, performance appraisal main focus is to measure and improve employee work. Performance appraisal reviews and assesses an employee systemically to help an organization identify employee achievements and further evaluate their contribution towards the overall organizational goals. The aim of performance management is to enhance performance whereby employees from all the departments work together to achieve a common goal set by the organization. Performance Management and performance appraisal aims at measuring and improving workforce value Armstrong (2009, p. 620).
Drivers of Performance Management/Appraisal
Performance management is not about the organization achievement but also an important process for employees. The most important p...