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1.1. Context of
1.1.1 Performance management and appraisal
近年来，绩效管理已引起社会的广泛关注。这个概念最初应用于私人部门，然后它开始被应用到公共部门（奥斯马尼和maliqi，2012）。绩效管理是指各种活动，确保组织达到其目标有效（奥斯马尼和maliqi，2012）。有绩效管理的几个主要过程，包括制定目标和计划、绩效实施、绩效考核、结果反馈、结果应用（唯美和feng-e，2012；阿吉尼斯，2013）。在这些活动中，绩效考评是绩效管理的关键环节（奥斯马尼和maliqi，2012；唯美和feng-e，2012）。绩效管理往往使用绩效考核作为管理过程的输入（denisi和普里查德，2006）。同时，绩效考核在人力资源管理中也起着关键作用。评价的结果可以应用在人力资源管理（塞义布几乎每一个方面，2011）。一个好的绩效考核与绩效管理系统为企业实现其战略目标的重要意义，提高组织绩效，增强组织的竞争优势（布拉顿和金，2000；唯美和feng-e，2012；denisi和普里查德，2006）。作为人力资源管理的重要组成部分，本文将对绩效管理与评价进行探讨。本文将特别强调绩效考核。In recent years, performance management has aroused much attention in the society. The concept was initially applied to private sectors, and then it began to be applied to public sectors (Osmani and Maliqi, 2012). Performance management refers to all kinds of activities that make sure that an organization reaches its objectives effectively (Osmani and Maliqi, 2012). There are several main processes of performance management, including targets setting and planning, performance implementation, performance appraisal, results feedback and results application (Weimei and Feng-E, 2012; Aguinis, 2013). Among these activities, performance appraisal is the crucial link of performance management (Osmani and Maliqi, 2012; Weimei and Feng-E, 2012). Performance management tends to use performance appraisal as input of the management process (Denisi and Pritchard, 2006). At the same time, performance appraisal also plays a key role in the whole human resource management. The results of the evaluation can be applied in nearly every aspect in human resource management (Saibou, 2011). A good performance appraisal and performance management system are of great significance for enterprises to accomplish its strategic goals, improve the organizational performance and enhance organizational competitive advantages (Bratton and Gold, 2000; Weimei and Feng-E, 2012; Denisi and Pritchard, 2006). As one of the most important components in human resource management, performance management and appraisal will be discussed in this essay. The essay will put particular emphasis on performance appraisal.
1.1.2 Performance appraisal in knowledge-intensive firms in China
Performance appraisal enables the organizations to improve the performance. The current situation in China is that many knowledge-intensive firms do not have effective and complete performance appraisal system (Zhihong, 2010). However, with the development of people’s cognition, increasingly firms in China have recognized the importance of performance appraisal and paid more attention to its implementation.
1.1.3 Aims and Objectives of the essay
The aim of this essay is to argue the importance of performance appraisal to human resource management and to the organizational performance. Besides, the essay wants to discuss how the context in which the organization is affects the performance appraisal implementation.
1.2 Structure of this essay
This essay will use a case study to explain the arguments of performance appraisal. The contents are divided into four sections. The first section is the introduction. In the second part, this essay will present a literature review to state the theories related to performance appraisal and its relationship with organizational performance. Then a practical case which associated with the themes of this essay will be carried out to illustrate. At last, the essay will draw a summary of questions and give some suggestions
2. Literature review文献综述
More and more academic researchers are focusing on performance management and appraisal (Saibou, 2011). The following section will give a literature review on some of the related theories.
2.1 Concepts of performance appraisal and management
Many articles give the definitions of performance appraisal in different angles. This essay will present several previous concepts and opinions on performance appraisal. Performance Appraisal is defined by Denisi and Pritchard (2006) as not only organizational events illustrating performance criteria that can be used in the evaluation process, but also an evaluation process that scores are assigned according to the performance criteria based on how individuals perform in organizations which results are shared to all the employee. Yong (1996) defined it as a periodic measurement of output of employees’ performance against expectations. The process includes assessing and observing the employees’ performance in their work in order to know if their performance meets the pre-standard. Traditional performance appraisal is seen as only a measurement tool, while more modern theory use performance appraisal as an important foundation for decision-making (Rusli and Nur Azman, 2004). Osmani and Maliqi (2012) state that performance appraisal is a collection of communication during a certain period of time. This concept does not mention the function of performance improvement and content about the objectives of an organization. Performance appraisal is also considered as a series of process that include measurement indicators setting, implementing appraisal, appraisal interview and evaluation the effects (Bratton and Gold, 2007).
Because performance appraisal reflects what people do and their performance, performance appraisal system needs to be consistent with the business goals, which means it must be positioned in the strategic context. Otherwise, the appraisal will lose its practical significance (Neely and Gregory et al., 2005).
2.2 How important is performance appraisal to HRM
Performance appraisal is the core part of human resource management. There are a number of reasons for an organization to implement performance appraisal. It has important impacts on many aspects, such as training and development, identifying the advantages and shortcomings of an employee’s performance, promoting, salary administration and so on (Wisniewski and Stewart, 2004). In a word, it plays a critical role in all kinds of human resource management activities. Both private sectors and public sectors should regard performance appraisal as an essential approach to manage its human resource and their performance (Bratton and Gold, 2000). Several academic human resource articles point out that performance appraisals provide information for decisions like salary rising and others. All the decision-making activities need the communication between employers and employees, and they affect the satisfaction and commitment of employees (Wanguri, 1995).
At first, performance appraisal is the foundation of recruitment and promotion. According to the standard and job description which the organization provides, the organization can make decisions on whether the staffs should be promoted or retained based on the quality of their performance (Saibou, 2011). Performance appraisal is also an important basis for reward management. Employees who are evaluated to have good performance will be rewarded, while those who have poor performance may get a little punishment (Smith and Rupp, 2003; LAWLER, 2003).
Performance appraisal is the approach to motivate employees. It makes the employees better understand the requirements of the organization. Through performance appraisal, the employees will take the actions in which the organization desires and then result in the corresponding performance which the organization needs (Saibou, 2011; George, 2013). It helps the employees to develop their own abilities. Once the employees’ performance conform the organizational objectives, they will get future development.
Because performance interview is a crucial ring of performance appraisal, it offers a formal opportunity for employers to communicate with employees and inform the demands of the organization to employees (George, 2013). Moreover, the result of performance appraisal can be utilized in training and development of employees. The appraisal can diagnose the weakness of employees’ working performance (Abu-Doleh and Weir, 2007). At the same time, it helps the organization to identify the training need of employees according to their work and develop practical as well as effective training program for them. Then the employees will know the direction of future work and development (Saibou, 2011; George, 2013).
2.3 How important is performance appraisal to organizational performance
According to Mondy and Noe (2008), organizational performance is the achievement related to productivity, market share and level of service delivery. Human resource practice can help the organization to improve its performance and enhance the competitiveness (Bratton and Gold, 2000). Performance appraisal which belongs to human resource practice can be a powerful management tool for an organization to improve individual and organizational performance (Laud, 1984). Effective performance appraisal has been frequently believed to play a major role in connecting employees’ competence to organization performance (Wanjiku and Sakwa, 2013). The final goal of performance appraisal is to improve the organization performance (Denisi and Pritchard, 2006).
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