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