Effective Functioning of the Performance Management System - Coursework Example

The paper 'Effective Functioning of the Performance Management System' is a perfect example of management coursework. In today’s ever-dynamic and highly competitive business environment, most organizations are increasingly leveraging their human resources as a source of innovativeness and competitiveness. An effective, valid, strong and accurate appraisal system for rating the performance of employees is indispensable in ensuring the effective functioning of the performance management system and helping the organization attain competitive advantage ((Kuvaas, 2006:506; Boachie-Mensah & Seidu, 2012; Abdulakadir, Isaika, and Adedoyin, 2012:124).

The outcome of the appraisal process, the accuracy of employee ratings as well as the perceived effectiveness of the appraisal process are critical as such inputs are often used by organizations to make various decisions in promotion and compensation, administrative, and training, and development.Performance appraisal systems also make it possible for employees to understand their capability development and their performance, and in this sense keep employee morale high and improve organizational health.

This is possible through an effective and fair appraisal system (Boachie-Mensah and Seidu, 2012). Various research studies have explored performance Appraisal systems and the need for such systems to work effectively in organizations. This section reviews the literature on performance appraisal practices and policy options by looking at main approaches in performance appraisal, objectives of performance appraisal programs, issues surrounding performance appraisal systems, the managerial role and employee perceptions in performance appraisal, and performance appraisal practices in the entertainment/nightlife industry.

Performance Appraisal has been in existence since the industrial revolution where it was used as a means of monitoring organizational output (Fandray, 2001). However, during the earlier days, it was used more as a negative procedure than a positive one.