| Performance appraisal is one of the | | | | further explained with the help of the |
| popular concepts among the multinational | | | | example of Nokia. Nokia has |
| and local companies. The concept has | | | | incorporated performance appraisals in |
| been defined by DeVries et al., (1981) | | | | its compensation plans for its |
| as the process which allows firms to | | | | employees. The company has adopted the |
| measure and consequently evaluate an | | | | philosophy of pay-for-performance and |
| employee's achievements and behavior | | | | therefore measuring and gauging |
| over a certain period of time. The basic | | | | different performance indicators of each |
| purpose of using performance appraisal | | | | employee is essential to the company. |
| techniques within an organization is to | | | | Nokia is an innovative firm with a |
| align the employee's efforts with the | | | | global matrix structure and a typical |
| overall objective of the firm.There has | | | | line management configuration at the |
| been a widespread discussion within the | | | | country level. Therefore the performance |
| academic circles as to how to define | | | | appraisal system called 'Investing in |
| performance (Papers4you.com, 2006). | | | | People' has been designed as 360 degree |
| Drawing upon Briscoe & Schuler (2004) | | | | feedback and electronic briefing |
| performance can be viewed as a | | | | sessions (Pollitt, 2004), which are |
| combination of several variables, such | | | | perfectly aligned with the structure and |
| as motivation, ability, working | | | | overall aim of the company.It can be |
| conditions and expectations. It has been | | | | concluded from the discussion that |
| established that there are certain | | | | valuable organizational objectives are |
| factors that affect employees' | | | | served with the help of performance |
| performance more than others. These | | | | appraisals and organizations should use |
| factors, according to Dowling et al | | | | the technique by aligning the |
| (1999) include the compensation package; | | | | performance parameters with their |
| the nature of task; support from higher | | | | overall mission and |
| management; the working environment and | | | | vision.References:Briscoe, D. & Schuler, |
| the overall corporate culture.There are | | | | R. (2004), "International Human Resource |
| many advantages mentioned in the | | | | Management" 2nd Ed., RoutledgeDowling et |
| literature regarding the use of | | | | al (1999), "International Human Resource |
| performance appraisals within an | | | | Management - Managing People in a |
| organization (Papers4you.com, 2006). It | | | | Multinational Context" 3rd Ed., |
| has been suggested that it improves the | | | | International Thomson PublishingDeVries, |
| communication between the higher to | | | | D.L., Morrison, A.M., Shullman, S.L., |
| lower level management; identify areas | | | | Gerlach, M.L. (1981), "Performance |
| of improvement; show employees training | | | | Appraisal On The Line, Center for |
| needs; help in promotion, retention and | | | | Creative Leadership", Greensboro, |
| termination decisions; and means of | | | | NCFletcher, C. (1992), "Performance |
| managerial control (Fletcher, 1992). In | | | | management: its nature and research |
| order to take full advantage of the | | | | base", in Developing a |
| performance appraisals, the goal in | | | | Performance-oriented Culture (Eds), |
| designing such systems should be | | | | Association for Management Education and |
| congruent to the overall aim and vision | | | | DevelopmentPollitt, D. (2004), "Nokia |
| of the company. For instance, it is | | | | Connects HR Policy with Company |
| evident that there is a direct | | | | Success", Human Resource Management |
| correlation between the performance of | | | | International Digest, Vol. 12 No. 6, |
| employees and their rewards as | | | | p30-32Papers For You (2006) "P/HR/244. |
| businesses do seek creation of wealth as | | | | Performance appraisal and 360 degree |
| their primary goal. Therefore one of the | | | | assessment", Available from For You |
| increasingly adopted uses of performance | | | | (2006) P/HR/208. Performance appraisal |
| appraisals is to motivate employees to | | | | and employee feedback", Available from |
| perform better by linking it with reward | | | | [21/06/2006]Copyright 2006 Verena |
| packages.The concept and its uses can be | | | | Veneeva. |