Performance appraisal is considered one of the most important systems that receive the attention of a large number of industrial and service organizations alike, and in view of the local and global pressures and challenges that organizations are currently facing, as the environment in which these organizations now operate is significantly different from the past. It is necessary to realize that systems and indicators for measuring and evaluating the institutional performance of organizations have become a multi-faceted phenomenon whose threads move in multiple fields, and thus institutional performance has become an integrated system for the results of the organization’s work in the light of its interaction with the elements of its internal and external environment.
We can define the concept of performance appraisal as finding a measure through which the extent to which the organization has achieved the goals for which it was established can be known, and those goals can be compared with the achieved goals, and knowledge and determination of the amount of deviations from what was planned in advance, with identification of the causes of those deviations and methods of treatment.
The importance of performance appraisal?
The performance appraisal process is considered one of the important necessities for the continuity of the organization’s work and success, as it enables organizations to take a quick picture of the reality of the organization’s current activity and compare that with one of the following three criteria:
First: The historical criterion: It is the comparison of the current organization with the performance of the organization for the past period, which represents distinguished successes in its performance.
Second: Reference Standard: Comparing the performance of the organization with the outstanding performance of organizations working in the same industry or practicing the same activity.
Third: The target criterion: Comparing the achieved performance with the planned objectives included in the organization’s strategy.
The importance of performance appraisal in relation to the performance of the organization is highlighted in the following:
Determining the strengths and weaknesses of the organization’s performance, aims to measure progress and delay in achieving goals.
Knowing the extent to which the organization can achieve optimal use of its various resources (human, material, information, etc.) available to it.
Directing the employees of the organization to perform their work as fully as possible.
Clarify the reciprocal relationship between the departments and branches of the organization to verify that their performance is as planned.
Checking the conformity of performance according to the required quality standards.
This requires each organization to prepare a system for evaluating its performance, in order to ensure its survival in the competitive business environment.
Recent studies also indicate that the performance appraisal process targets three goals located on three levels: the organization, the manager, and the working individual. These goals are as follows:
Its importance at the level of the organization:
Creating an appropriate climate of trust and ethical dealing that eliminates the possibility of multiple complaints of employees towards the organization.
Raising the level of employee performance and investing their capabilities in a way that helps progress and development.
Evaluation of human resource management programs and policies and their practical results that can be used as indicators to judge the accuracy of these policies.
Assisting the organization in setting accurate standard performance rates.
Its importance at the level of managers:
Pushing the manager to develop their skills and intellectual capabilities and enhance their creative abilities to reach a sound and objective assessment of their performance.
Encourage managers to develop good relations with subordinates and approach them to identify problems and difficulties
Its importance at the employee level:
It makes the worker feel more responsible in order to increase his sense of justice and that all
His efforts are taken into account by the organization.
Pushing the worker to work diligently and sincerely in order to await his victory with the respect and appreciation of his superiors, morally and financially.
What are the performance appraisal requirements for organizations?
The importance of the organization’s success lies in its ability to take into account the basic requirements of the integrated performance appraisal process and the development of performance appraisal systems. Studies indicate that the most important requirements for administrative excellence in developing the organization’s performance appraisal systems are:
The importance of effective monitoring and evaluation of the results achieved by the organization and the extent to which they are balanced from the point of view of stakeholders.
Effective monitoring, analysis and evaluation of the extent of integration and consistency of the organization’s operations and its ability to produce goods and services that satisfy customers [external and internal] and respond to their requirements.
Effective monitoring and evaluation of the methods of using the resources available to the organization and the efficiency of management in employing them in order to achieve the desired goals and objectives.
Continuous monitoring and evaluation of the organization’s efficiency in building and investing in relationships with the surrounding climate parties on whose support the organization relies in achieving its goals.
Evaluation of the organization’s research and development activities and the extent to which its results are benefited, the degree of openness of the organization to learn from the experiences and experiences of others, and its ability to create an organizational culture favorable to learning and the investment of internal and external sources of knowledge.
Therefore, it is necessary for the comprehensive institutional evaluation system to be able to produce indicators indicating performance trends and future developments that can be compared with the planned performance goals and its levels that meet the requirements of the external climate [market, customers, competitors…], and thus management can redirect performance if its direction is clear to deviate from the path. the correct. Thus, the evaluation system is closer to the process of continuous follow-up and correction of the course of performance than to the idea of control and examination after the end of the performance.
