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Mariel P. Tudeja BS Entrepreneurship 2BFEDERAL HOSPITAL PERFORMANCE APPRAISAL SYSTEM CASE1.How effective is the appraisal system at Federation Hospital? Think about itsimpact on employee performance and retention.Performance appraisal has become a staple element of HRM practice inboth public and private sector organizations around the globe. Performanceappraisal is a widely used tool of human resources management. Initially used asa tool for managers, it is now used to evaluate the performance of manual,secretarial and administrative staff and part-time staff in the public and privatesectors. Traditionally appraisals were conducted by supervisors, though in recentyears there has been an expansion in range of people who are able to providedata and make assessments of an employee’s performance. Organizations useperformance appraisal for a wide range of purposes. Surveys commonly reportthe use of performance appraisal for clarifying and defining performanceexpectations, identifying training and development needs, providing careercounseling, succession planning, improving individual, team and corporateperformance, facilitating communications and involvement, allocating financialrewards, determining promotion, motivating and controlling employees andachieving cultural change (Bowles and Coates, 1993; IDS, 2007; IRS, 1994,1999; Nankervis and Compton, 2006). These purposes have been classified intotwo broad categories – evaluative and development.By analyzing the Federation Hospital case in relation to theimplementation of Performance appraisal system, all I can is that it’s effective interm of a Once a year the supervisor and the employee have a face-to-facemeeting to review progress towards the performance goals set at the beginningof the evaluation cycle and come up with a performance rating, throughperformance appraisal supervisors and employees can be able to set objectiveswhich are reasonable and stand a chance of being achieved, also it’s a great tool