Managers with even the best understanding of motivational processes are likely to encounter situations where their expectations and the performance of their subordinates fail to coincide. In these situations, it is up to the manager to determine what the problem is, and how best to remedy the situation. Fundamentally, it is the manager's responsibility to evaluate the performance of the subordinate, and counsel the subordinate on how best to improve that performance. This research examines the role of performance appraisals and rewards in the business environment.
Importance of Employee Appraisals to Companies
Evaluation and counseling is important not only to the immediate job at hand, but also in anticipating the needs of the organization in the future. By evaluating an employee's strengths and weaknesses, and by considering the needs of the organization in the future, a strong manager will be able to help develop employees who are able not only to help the organization meet its current needs, but also to fulfill the organization's future needs. There is also reward for the subordinate who, with the assistance of his manager, is able to cultivate skills which will help build his professional skills and which serve to enhance his self-esteem and self-worth. In this way, effective evaluation of an employee can provide the basis for strong motivation in the future, and help the employee develop the skills necessary for his own career growth.
Evaluating subordinates is most often accomplished through the use of a formal performance evaluation strategy. Most organizations have this formal process in place so that it occurs annually, and it is often tied to pay increases. However, effective managers recognize that informal evaluation performed more frequently helps keep staff members apprised of what is expected of them, and how they are measuring up to those expectations.
Generally, performance evaluation techniques ca...