Outline the advantages and disadvantages of formally appraising Essay

Outline the advantages and disadvantages of formally appraising employees systems and assess the overall value of appraisals - Essay Example , without a formal structured system of appraisal as well as evaluation, employees will instill judgments on their fellow colleagues, supervisors, subordinates and peers informally and arbitrarily. This ability to make judgments, without following the correct procedure, may create ethical, legal and motivational problems within the organization. Alternatively, a formal appraisal system provides structured guidelines that are lawful, valid, reliable and defensible (Starcher, 2006). Smith (2006) and Bernardin & Beatty, (2009)point out that performance appraisal in an organization is a complex and challenging process. Usually, most managers do not acknowledge, but the fact remains it is an inevitable component within the management and supervisory process. Generally, workers will be judged on their performance, irrespective of whether or not they are under a formal appraisal system. After all, this is the nature of human beings to judge others. Because several of these uninformed, informal judgments will be flawed, there is need for formal appraisal system so as to reduce the possibilities of making judgments about others (Landy & Farr, 2003). This will benefit the organization and promote employee’s performance. Performance appraisal is an efficient source of information in an organization. Appraising employees’ systems ensures that the overall performances of the organization are focused to attaining the set goals (Grote & Grote, 2002). The views and reviews from the system include but not limited to questions like, ‘how will the organization attain its goals and what it will contribute?’ The results of the performance appraisal may lead to overall improvements of the job performance e.g. improved customer service and better productivity. This benefits the organization in various ways. First and foremost, basing on the future employee decisions and their needs, it is easier for an organization to decide which type of training and promotion needs are