: Worlds Leading Management Portal. MBA | Classroom, Boardroom and Beyond

Go Back Forums - Your MBA Online Degree Program and Management Students Forum for MBA,BMS, MMS, BMM, BBA, students & aspirants. > Projects HUB for Management Students ( MBA Projects and dissertations / BMS Projects / BBA Projects > Resolve Your Query - Get Help and discuss Projects > Human Resources Management



Discuss PERFORMANCE APPRAISAL AND COMPETITIVE ADVANTAGE within the Human Resources Management forums, part of the Resolve Your Query - Get Help and discuss Projects category; ...



LinkBack Thread Tools Display Modes
 (1 (permalink))
Sunanda K. Chavan
sunandaC has a spectacular aura aboutsunandaC has a spectacular aura aboutsunandaC has a spectacular aura about
Management Paradise Guru
Status: Offline
Posts: 6,680
Join Date: Jul 2010


The objectives of performance appraisal, listed above, point out the purpose which such an exercise seeks to meet. What needs emphasis is that performance evaluation contributes to firm's competitive strength. Besides encouraging high levels of performance, the evaluation system helps identify employees with potential, reward performance equitably and determine employee's need for training

Improving Performance
An effective appraisal system can contribute to competitive advantage by improving employee job performance in two ways-by directing employee behaviour towards organizational goals, as was done by the second beekeeper (see opening case), and by monitoring that behaviour to ensure that the goals are met.

Making Correct Decisions
As stated above, appraisal is a critical input in making decisions on such issues as pay raise, promotion, transfer, training, discharges and completion of probationary periods. Right decision on each of these can contribute to competitive strength of an organization. If promotion, for example, is made on performance, the promotee feels motivated to enhance his or her performance.

Ensuring Legal Compliance
Promotions made on factors other than performance might land up a firm in a legal battle, thus diverting its focus on non-productive areas, as it happened to Williamson Magar. Organizations can minimize costly performance-related litigation by using appraisal systems that give fair and accurate ratings.

Minimizing Job Dissatisfaction and Turnover
Employees tend to become emotional and frustrated if they perceive that the ratings they get are unfair and inaccurate. Such employees find that the efforts they had put in became futile and obviously get de-motivated.

Dissatisfaction in the job sets in and one of the outcomes of job dissatisfaction is increased turnover. Fair and accurate appraisal results in high motivation and increased job satisfaction. An organization having satisfied and motivated employees will have an edge over its competitors.

Consistency between Organizational Strategy and Behaviour
An organization needs a strategy consistent with the behaviour of its employees if it were to realize its goals. A truism of organizational life is that people engage themselves in behaviours that they perceive will be rewarded. As employees want to be rewarded, they tend to occupy themselves more with those activities on which the organization emphasizes. For example, if the focus is on service, employees will behave in ways that will help them in gaining rewards associated with service delivery. If the focus is on cost control, employees will seek to control cost and thus be recongnised and rewarded.

If the focus is on rewarding productivity, employees will strive for productivity. The performance appraisal becomes not only a means of knowing if the employees' behaviour is consistent with the overall strategic focus, but also a way of bringing to the fore any negative consequence of the strategy- behaviour fit For example, a single point productivity focus may include potential negative consequences such as decreased quality and co-operations. Thus, the performance appraisal system is an important organizational mechanism to elicit feedback on the consistency of the strategy-behaviour link.

Organizational Strategy and Performance Appraisal
The performance appraisal system serves many organizational objectives and goals. Besides encouraging high level of performance, the evaluation system is useful in identifying employees with potential, rewarding performance equitably. And determining employees' needs for development. These are all the activities that should support the organization’s strategic orientation. Although these activities are clearly instrumental in achieving corporate plans and long-term growth, typical appraisal systems in most organizations have been focused on short-term goals.

From the strategic management point of view, organizations can be grouped into three categories defenders, prospectors and analyzers. Performance appraisal has definite roles in all the three strategies.

Typically, defenders have a narrow and relatively stable product-market domain. Because of this narrow focus, these organizations seldom need to make major adjustments in their technology. Structure or methods of operations. They devote primary attention to improving the efficiency of their existing operations. Because of the emphasis 011building skills within the organization, successful defenders use performance appraisal for identifying training needs. Performance appraisal is usually more behaviour oriented.

Organizations with a prospector strategy continuously search for different product and market opportunities. In addition, these organizations regularly experiment with potential responses to new and emerging environmental trends. Prospectors are often the harbingers of change. Because of the emphasis on skills identification and acquisition of human resources from external sources, as opposed to skills building with the organization, prospectors often use the performance appraisal as a means of identifying staffing needs. The emphasis is on results. Finally, the focus is on division and corporate performance evaluation as they compare with other companies during the same evaluation period.

Organizations with an analyzer strategy operate in two types of domains. One domain is stable while the other is changing. In their more innovative areas, managers watch their competitors closely and rapidly adopt the ideas that appear promising. In general, analyzers use cost effective technologies for stable products and project or matrix technologies for new product. Analyzers tend to emphasize both skill building and skill i1cquisilion and employ extensive training programmes.

Thus, these organizations attempt to identify both training as well as staffing needs. The appraisal systems are considered at the individual, group and divisional levels. Finally, successful analyzers have a tendency to examine current performance with past performance within the organization. Cross-sectional comparisons (comparisons among 'companies) may also occur.

Whatever the category, a performance appraisal system has strategic importance to a firm in three ways:
1. Feedback mechanism,
2. Consistency between organizational strategy and job behaviour, and
3. Consistency between organizational values and job behaviour.
Friends: (0)
Reply With Quote
Your Friendly Helper
Rep Power: 10MBA Helper
Automatic Reply for links related to your post


I am your friendly Helper. Check the related links below which might be of your interest.

Not a Member Yet ?? Sign Up Now. Click Here

Looking for something? Search the Forums

Need Help on your Research Report ? Ask for Help or Help Others and create your network. Give back to the community by sharing your knowledge in terms of notes, research reports, discussions, articles etc..

Help Yourself and Help Others

Ask us, we are here to help


Similar Threads

Thread Thread Starter Forum Replies Last Post
Sustainable Competitive advantage Sunanda K. Chavan Marketing Management ( RM , IM ) 0 November 3rd, 2011 05:11 PM
Competitive Advantage by Michael E. Porter bb7bb217 Resolve Your Query - Get Help and discuss Projects 10 February 18th, 2010 08:53 PM
competitive advantage Div Bajaj General Talks 0 September 10th, 2008 06:13 PM


advantage, appraisal, competitive, performance

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are Off

» Login
Forgot Password?  New User?

» Recent Threads

BMS Cutoff in Mithibai...
Last post by Jagruti Shah
12 Minutes Ago 03:21 PM
0 Replies
Hello TomMoore > Please...
Last post by Tom Moore
15 Minutes Ago 03:18 PM
0 Replies
Earthquake Hit America...
Last post by Pandey Bhoopendra
18 Minutes Ago 03:15 PM
0 Replies
B.Sc. Cutoff in Mithibai...
Last post by Jagruti Shah
1 Hour Ago 02:19 PM
0 Replies
B.A Cutoff in Mithibai...
Last post by Jagruti Shah
1 Hour Ago 02:08 PM
0 Replies
Class 10th (X) CBSE...
Last post by Pandey Bhoopendra
1 Hour Ago 01:54 PM
0 Replies
B.Com Cutoff in Mithibai...
Last post by Jagruti Shah
1 Hour Ago 01:42 PM
0 Replies
Class 12th (Science)...
Last post by Pandey Bhoopendra
2 Hours Ago 01:16 PM
0 Replies
Class 12th (Science)...
Last post by Pandey Bhoopendra
2 Hours Ago 01:05 PM
0 Replies
Payroll Outsourcing India
Last post by Hasya Kavita
3 Hours Ago 12:27 PM
0 Replies
Online Mobile Recharge...
Last post by Siddhu Chowdary
3 Hours Ago 11:58 AM
7 Replies
Confusion after Results...
Last post by Pandey Bhoopendra
3 Hours Ago 11:35 AM
0 Replies
Who was the first asian...
Last post by Pandey Bhoopendra
16 Hours Ago 10:54 PM
2 Replies
Limitation of Just in...
Last post by Pandey Bhoopendra
16 Hours Ago 10:46 PM
1 Replies
List of Mumbai Colleges...
Last post by Ritesh Maratha
16 Hours Ago 10:42 PM
0 Replies

» Ads

» Projects Helpline

need books Operation...
Last post by Pandey Bhoopendra
21 Hours Ago 05:57 PM
Project on CRM (...
Last post by Pandey Bhoopendra
1 Day Ago 08:12 PM
7 ps of bank marketing
Last post by Pandey Bhoopendra
1 Day Ago 07:34 PM
Project topics for...
Last post by Pandey Bhoopendra
1 Day Ago 06:27 PM
Last post by Pandey Bhoopendra
2 Days Ago 09:51 PM is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.

Management Paradise
About Us
Contact Us
Kartik Raichura
Terms & Conditions
Privacy Policy
Copyright © 2004 - 2013 Management Paradise. Site Developed by