Performance appraisal refers to the process of evaluating the performance of an employee of the organization in order to analyze the contribution of the person to the growth of the company so that the efforts of the person can be rewarded properly. Performance appraisal is done mainly before providing transfer, promotion, salary increment and other rewards (DeNisi and Murphy, 2017). However, job evaluation refers to the process of evaluating the value and significance of a job role in relation to facilitating the growth of the organization. In job evaluation, the importance of the roles and responsibilities associated with the job position is analyzed. According to Bratton et al. (2021), job evaluation is mainly done in order to understand how the responsibilities associated with a job position can facilitate the growth of the organization and can help achieve the strategic goals of the organization. According to Armstrong and Taylor, (2020), proper job evaluation can help the human resource officers of the organization to identify the skill requirements for the job position and therefore, it becomes easier for the human resource officers to hire eligible candidates to the job positions considering the skill requirements and the significance of the job role.
On the other hand, in performance appraisal the performance of those roles and responsibilities by the job holder is evaluated. From this perspective, it can be said that performance appraisal is the process of evaluating the contribution of the job holder but not the job itself while job evaluation is the process of evaluating the significance of a job role and the responsibilities associated with that job role (Hunter, 2017). This is the basic difference between the concepts of performance appraisal and job evaluation. However, in this context, it can be said that both the performance appraisal and job evaluation are important aspects of human resource management. Job evaluation is important for recruiting deserving candidates to various vacant positions within the organization. On the other hand, performance appraisal is also important for motivating the employees to perform their roles and responsibilities efficiently (Armstrong and Taylor, 2020). In the manufacturing companies of Sydney, both performance appraisal and job evaluation need to be provided enough importance in order to achieve the strategic objectives of the organization.
Effective job evaluation can help those organizations to recruit the most appropriate candidates to the vacant positions considering the skill requirements for performing the responsibilities associated with the job position and the skills and competencies that the candidates have. According to McDavid et al. (2018), when an organization recruits appropriate and highly skilled candidates in the vacant job positions, it becomes easier for the organizations to manage their operations effectively. On the other hand, effective strategies of performance appraisal can help the organization to retain the highly skilled employees of the organization for long term (DeNisi and Murphy, 2017). This is also important for managing integrity between operations and to maintain the quality of services delivered to the customers.
References
DeNisi, A.S. and Murphy, K.R., 2017. Performance appraisal and performance management: 100 years of progress?. Journal of applied psychology, 102(3), p.421.
McDavid, J.C., Huse, I. and Hawthorn, L.R., 2018. Program evaluation and performance measurement: An introduction to practice. Sage Publications.
Hunter, J.E., 2017. A causal analysis of cognitive ability, job knowledge, job performance, and supervisor ratings. In Performance measurement and theory (pp. 257-266). Routledge.
Bratton, J., Gold, J., Bratton, A. and Steele, L., 2021. Human resource management. Bloomsbury Publishing.
Armstrong, M. and Taylor, S., 2020. Armstrong’s handbook of human resource management practice. Kogan Page Publishers.
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