One of the most common and important human resource activities is
the evaluation of work performance. Decisions about how to appraise
employee performance greatly affect employee attitudes and behaviors
in ways that may not always be obvious. Often at risk during the
appraisal process are such intangibles as commitment to the
organization, satisfaction, perceptions of fairness, and motivation to
change/improve behavior. For example, perceptions of unfairness and
dissatisfaction with the process may result in the rejection of
well-deserved feedback and refusal to use the feedback to improve
performance. Such behavior can lead to stagnation in employee
development. Dissatisfaction with the appraisal process can lower
motivation and lead to turnover. It can also make it difficult for
employees to link performance with rewards.
So, how can organizations improve the odds that employees will
react positively to the performance appraisal process? In a word --
participation. Participation can take many forms. For example,
employees can provide their opinion concerning the design or
improvement of the appraisal process. They can help decide what
criteria are used and how the criteria are assessed. They can choose
the rewards for different levels of performance. Employees can also
provide input through a self-appraisal component. A two-way feedback
discussion between supervisors and employees gives workers the
opportunity to state their views and opinions and set goals for their
own development. Some appraisal programs ask employees to provide
feedback for their supervisors in an upward appraisal of performance;
others ask for a review of peer performance. Finally, participation
can be as simple as providing an employee with an informal opportunity
to state his/her side of a performance related issue. These examples
of participation used together or individually, can help organizations
obtain positive employee reactions.
An interesting finding in the organizational research suggests that
employees react positively to the opportunity to participate even when
their participation does not have a tangible influence on
decisions. In other words, people do not have to feel their input has
an impact on the final outcome to feel they have been treated fairly
and to be satisfied with the decision. It is often enough to simply
allow them to express their opinion; employees interpret the
opportunity to voice their opinions as procedurally fair. They
intrinsically value this opportunity even when it does not affect the
final decision in a concrete way. Consequently, organizations can
promote desirable reactions by providing employees with an opportunity
to participate in the decision making process without losing any
decision-making control. The result is a positive experience for both
the organization and the employees. Giving people a voice can make all
the difference!