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This paper will reflect on how an effective reference appraisal increases employee performance, the advantages of a performance appraisal, potential forms of bias within the appraisal system and how performance appraisals can contribute to the achievement of strategic objectives. The first area that will be discussed is how an effective performance appraisal increases employee performance. An effective performance appraisal can increase employee performance if it is designed correctly.

There are many different methods that can be used to evaluate performance but the key to being effective is to make sure that there re set goals and they are attainable, that the employee receives coaching on set goals, and that feedback on the employees performance is given to the employee regularly. When these areas are provided to the employee there is a clear understanding of what is expected. “If you do the prep work diligently, there should be no surprises and performance evaluations become an afterthought, just the final step in a orderly, well managed process” (Oilman, 201 2, Para. ). By designing an effective performance appraisal it will help target and refine the weaker skills that require development through positive feedback, training and development” (House, 2012, p. 163). When providing the needed feedback and training you are developing the employee which will in turn create a more productive employee, which will increase employee performance. The employee that is given an effective performance appraisal will have a sense of fairness which in turns provides a highly productive employee that feels that their work is appreciated.

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The advantages of a performance appraisal will now be discussed. There are many advantages of a performance appraisals, they help point out strengths and weaknesses of employees. When you are able to pin point an employees strengths and weaknesses you are able to develop training programs that will help the performance of the employee. “Managers use performance appraisals to reward and compensate employees based on their contribution to the efficient completion and fulfillment of their job duties and responsibilities” (House, 2012, p. 163). This leads to a highly motivated employee which helps to increase performance.

Another advantage to performance appraisals is to show the bad performers in the organization that are lowering production and on the flip side points out the excellent performers that can lead to promotional opportunities. With the advantages of performance appraisals there are also potential bias that can take place. The potential of bias within the appraisal system can lead to decrease in performance of an employee due to low motivation. When a performance appraisal is subjective an employee can feel that it is bias and can lead to legal action. Employees want to know that the appraisal is fair and balanced.

You also have what is known as the regency effect, “This is a psychology term for when we overly focus on the most recent event as the basis for analyzing the entire past years performance” (Jackson, 2010). This does not motivate the employee to work hard the entire year. They soon learn that when it is close to their performance appraisal that they need to work harder, knowing that is what is going to be evaluated. Another form of bias is stereotyping an employee. By classifying an employee under any situation can be coordinators. “Perceptual and attribution biases are very hard to control.

However, organizations should earnestly try to make evaluators aware of biases to keep evaluations valid and reliable” (House, 201 2, p. 169). By making the evaluations valid and reliable will contribute to the achievement of strategic objectives being met. The performance appraisal can contribute to the achievement of strategic objectives being met. When linking the Human Resource Management (HARM) process with the performance appraisal process you are able to gain information that helps “in planning and decision making. Data received from performance appraisals reflect many aspects about employees” (House, 201 2, p. 62). The information gathered helps in the decision making about promotions or even termination. This information is also used to help make any modifications to job duties and job descriptions. It also helps in creating the necessary information in the recruiting process, by making sure the right person is filling that position. HARM helps in the development of training documentation and by reviewing the data collected from performance appraisal they are able to make any needed changes to fill in gaps that are brought to their attention through this process.

The HARM process is “managing of human skills and talents to make sure that they are used effectively and in alignment with organization goals” (House, 2012, p. 17). By using the data collected HER is linking the objectives of the organization through the appraisal process. In conclusion an effective performance appraisal process will increase an employees performance when designed to effectively promote goals, employee coaching and proper feedback.

The many advantages to the appraisal process is bringing key strengths and weaknesses to the attention of the manager and HER. This allows the manager and HER to properly reward and compensate their employees, which leads to highly motivated employees. To avoid the bias of the regency effect and stereotyping the appraisal process valid and reliable to help in achieving strategic objectives. By linking the HARM process with the effective performance appraisal process you can effectively connect them in meeting the organizations strategic objectives.

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