Problem Statement Problem Statement

The core objective of every business organization rests on attaining its
objectives, goals, or targets successfully. The objectives set by the
organization will only be in vain is insufficient attention not paid to
employees’ effort, or performance for successful accomplishment. In
order to attain the set, objectives, there is an urgent need to focus on
performance appraisal, which should be seamlessly connected to
incentives so as to facilitate employees in attaining high productivity.
Attractive appraisal systems are essential to the motivation of
employees seeking to be recognized and rewarded.
Many organizations in the contemporary business world utilize
performance indicators in evaluating their employees. The lack of
effective evaluation strategies that guarantee that the potential of the
employee is fully harnessed has forced business administrators to go
back to the drawing board, especially owing to the evident absence of
connection between employees and the tasks that they do. The core
motive of utilization of performance appraisals rests on performance
improvement. Other grounds of performance appraisal rests on basis form
employment decisions such as promotions, as criteria in research (test
validation), and inform personal objectives for training programs.
However, performance appraisals manifest several drawbacks with the core
problem coming from the determination of the relationship between
organizational performance and individual job performance, which can be
difficult (Boachie-Mensah & Seidu, 2012). Performance appraisal can be
detrimental to the organization if not utilized properly, and can also
be ineffective if they do not align with the organizational culture and
system. Some of the areas that can be highlighted where performance
appraisal may be detrimental include: quality improvement employee
perceptions and performance goals.
Evidently, no human resources practices can be expected to be perfect
give that, when dealing with people a whole range of emotions, values,
needs, and attitudes come into play. Performance appraisal when
undertaken improperly tends to entangle performance issues with personal
issues. The core problem lies in the fact that most supervisors and
managers largely untrained in how to evaluate employee performance. Even
in cases where managers can be trained in the planning and administering
of performance appraisals, they frequently encounter difficulties in the
objective and effective appraisal of the accomplishments of their
Performance appraisals can be regarded as one of the most controversial
talent management practices given that they can be so easily biased and
ineffective. The criticisms of performance appraisals emanates from the
notion that they are an enormous waste of time and the assertion that
they have a destructive impact on the relationship between managers and
their subordinates (Boachie-Mensah & Seidu, 2012). This is not
far-fetched given that talent management systems feature a number of
flaws nevertheless, performance appraisal cannot be discarded as they
are pertinent to effective talent management. On the other hand,
performance appraisal can be one of the essential tools that make
employees very effective and active at work.
The key to resolving this problem lies in making performance appraisal
part of a complete management system, which encompasses compensation
actions, performance feedback, goal setting, development, and goal-based
appraisal of performance. It is essential to utilize a performance
appraisal system that is fair, job-related, and objective to the
individual appraised. Performance appraisal seeks to foster and improve
employee effectiveness, which necessitates that managers and employees
work together in planning, monitoring, and reviewing of the employee’s
work objectives and the employee’s contribution to the organization.
Research Questions
Which factors are pertinent to the successful execution of the
performance appraisal system in target organizations?
How can employee performance appraisals add to the organizational
Boachie-Mensah, F. & Seidu, P. A. (2012). Employees’ perception of
performance appraisal system: A case study. International Journal of
Business and Management 7 (2), 73-88.

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