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CHAPTER I

Introduction

1.1 Background
In an effort to win the competition in the free market every company is
required to produce the goods / services are highly competitive, which is the
goods / services have certain advantages. On the production of goods / services
with high competitiveness is determined by a high level of efficiency. High
efficient level determined by the quality of Human Resources (HR), which is
human resources professionals who can create new added value and is able to
respond to new challenges. To be able to have a human resources professionals,
organizations can conduct education and training as well as guidance for its
human resources. It's just to produce a high performance of an employee not only
need to have the skills, but it also has the desire and passion for excellence.
In order to improve employee performance, this paper will discuss a
concept of the field of human resource management of performance appraisal
which is believed to be able to encourage workers to improve his performance,
which is called the management appraisal and maximize performance.

1.2 Objectives
1. Know the concept of performance appraisal
2. Know the performance appraisal process and maximize performance
3. Know the benefits of the performance improvement of performance
appraisal
4. Know the effort to improve the performance of the performance
appraisal process.
CHAPTER II
Discusion

2.1 The Concept of Performance Appraisal


Performance is a function of motivation and ability. To complete the task
or job, a person must have a degree of willingness and a certain level of ability.
Willingness and skills of a person is not effective enough to do something without
a clear understanding of what to do and how to do it (Hersey and Blanchard:
1993).
According Mondy and Noe 1 (2005) performance appraisal is a formal
review and evaluation of the performance of individual or team assignments.
Performance appraisal is to evaluate the relative performance of current
employees and / or in the past against achievement standards.
Effectiveness of performance appraisal above, which are categorized than
twenty kinds of performance appraisal purposes depends on strategic business
objectives to be achieved. Therefore, performance appraisal is integrated with the
strategic goals for various reasons which is:
1. Aligning the individual tasks with organizational objectives, namely, to
add a description to be shown employee actions and the results they
need to accomplish in order for a viable strategy.
2. Measuring the contribution of each unit and each employee.
3. Evaluate the performance contributed to the actions and administrative
decisions that enhance and facilitate strategies.
4. Assessment of performance may pose a potential to identify the need
for strategies and new programs.
2.2 Performance Appraisal in Maximizing Performance
Mani (2002) in his study states that performance appraisal is important in
order to develop high-performing employees or low. Performance appraisals can
be a source of information for employees and organizations in order to develop
performance. Ghorpade and Chen (1995) stated that there are three reasons that

make the performance evaluation function is so important position in the


organization.
First, as a function of performance appraisal is something inherent and
inevitable in any type of organization. In these conditions, (1) the organization
knows the achievements of the workers through the performance appraisal done,
(2) is required to calculate the contribution of each individual to the progress of
the organization, and (3) a formal performance assessment can protect
organizations from the negative actions of the members of the organization.
Second, the function of the performance appraisal is an activity full of
consequences, both to individuals within the organization as well as for the
organization itself. From an organizational perspective, system weaknesses and
errors will result in performance appraisal practices against the ineffectiveness of
the implementation of the HR functions, such as the function of compensation,
training and development function and so on.
Third, performance appraisal activity is an activity that exposes the
assessor on the condition that required him to obtain a rating that is clean, accurate
and ratings are based on individual merit. At this point, the function of the
performance appraisal together with other variables, determine the level of
achievement of the organization's performance.
George and Jones (2002) suggests the benefits of performance appraisal is
for the adjustment of compensation, placement and career development decisions
and provide equal employment opportunities, so that employees can improve their
performance. This will have an impact on improving the planning and
development of the organization to meet the challenges of the future.

2.3 Benefits of Performance Improvement

Performance appraisal by Werther and Davis (1996) has several benefits


for the organization and employees are assessed, namely:
1. Performance Improvement. That allows employees and managers to
take action that is associated with increased performance.
2. Compensation adjustment. Assist decision makers to determine who is
entitled to receive a salary increase or vice versa.
3. Placement decision. Determine promotion, transfer, and demotion.
4. Training and development needs. evaluate the need for employee
training and development in order to optimize their performance.
5. Carrer planning and development. Guide to determine the type of
career and career potential that can be achieved.
6. Staffing process deficiencies. Affect the recruitment procedure.
7. Informational inaccuracies and job-design errors. Help explain what a
mistake that has occurred in the management of human resources,
especially in the field of job-analysis information, job-design,
information systems and human resource management.
8. Equal employment opportunities. Shows that the placement decision is
not discriminatory
9. External challenges. Sometimes the employee's performance is
influenced by external factors such as family, personal finance, health,
and others. Usually this factor is not very visible, but with performance
assessment, external factors would seem to support the human
resources department to provide assistance for improving the
performance of employees.
10. Feedback. Provide feedback to personnel matters and for the
employees themselves.

Benefit Performance Appraisal For Company


According Rivai & Basri benefit assessment for the company include:
a) Repair all the nodes existing units within the company, because:

1) become more effective communication regarding the company's


goals and values corporate culture .;
2) Increased sense of community and loyalty;
3) Improving the ability and willingness of managers to use their
skills and expertise led to motivate employees and develop the
b)
c)
d)
e)
f)

willingness and skills of employees.


Increase the view widely regarding tasks performed by each employee.
Improving the quality of communication
Improves overall employee motivation
Improving the relationship harmony in achieving corporate goals
The increase in terms of control of all activities performed by each

g)
h)
i)
j)

employee
Expectations and long-term view can be developed
In order to more clearly identify training and development needs
Capability to identify any problems
As a means of delivering a message that the employee was rewarded by
the company
2.4 Improving Performance Strategies
Basically, data is said to be good if the employee's performance is a

function of performance ability, motivation, opportunity, and the technology is


quite good. This means that employees have the capability specifications are
qualified, highly motivated in carrying out the task, given the opportunity and the
technology that supports the organization. To meet the factors supporting a
performance, the company can do several things as follows:
a) Conduct Training
This is to increase the motivation and knowledge of employees. Training
can be done for refreshment performance and morale of employees who
have been working so tired her, thus, need for an ambiance that makes
them excited again in the works. Training can also be used to upgrade the
knowledge and skills of employees in accordance with company
objectives. Training is usually in the two depends on the purpose of the
training we do. Outbound training usually done for training of employees
who expect an increase in motivation and skills working in a different way,
employees take a different look at the work atmosphere but still can be

applied in the world of his job, while In Class training is usually filled by a
lot of material to open new discourse or current industry trends so that
employees will be pumped his motivation when looking forward to the
competition is getting tougher. Both are good, depending on our needs at
this time in accordance with the conditions of the employees and the
company's current and future.
b) Emotional Closeness
Between superiors and subordinates can also make an emotional bond to
maintain the performance of the employee, the employee as well as the
principle of man, who wants to be noticed and appreciated. Slightest
attention will be able to improve and maintain the performance of the
employee.
c) Give Reward
This can also be done to improve employee performance, but be careful
how you do it because it could be when the reward can not guard will
quickly demotivate employees, because the employees are familiar with
the rewards will be able to change the motif in the work.
d) Task Delegation
It aims to provide opportunities for subordinates to independently make
decisions functionally. With delegates tasks employees get enough
opportunities to show maximum performance.
e) Infrastructure Renewal
Each infrastructure can be an important factor for the progress of the
company. Employees who work with the support of qualified information
technology and have a higher level of productivity. That is the renewal and
technology procurement specification of an employee can perform tasks
quickly and accurately. So functionally it encourages corporate success.

CHAPTER III
Closing

3.1 Conclusion
Performance is a function of motivation and ability. To complete the task
or job, someone must have a degree of willingness and a certain level of ability.
Willingness and skills of a person is not effective enough to do something without
a clear understanding of what to do and how to do it.
George and Jones (2002) suggests the benefits of performance appraisal is
for the adjustment of compensation, placement and career development decisions
and provide equal employment opportunities, so that employees can improve their
performance. This will have an impact on improving the planning and
development of the organization to meet the challenges of the future.
Benefit assessment is becoming more effective communication regarding
the company's goals and values of corporate culture, Increased ability and
willingness of managers to use their skills and expertise led to motivate
employees and develop the willingness and skills of employees, etc.
Strategies to improve performance are: Conducting Training, emotional
closeness between superiors and subordinates can also maintain the performance
of the employee, give reward to employees, and establish close relationship
between the families of employees.
CHAPTER IV
References
Rivai, Veithzal. 2005. Performance Appraisal. Jakarta : PT. Raja Grafindo
Dessler, Gary. 2005. Manajemen Sumber Daya Manusia. Alih Bahasa : Eli Tanya.
Penyunting Bahasa : Budi Supriyanto. Jakarta : Indeks
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Foster, Bill, dan Karen R. Seeker. 2001. Pembinaan Untuk Meningkatkan Kinerja
Karyawan. Penerjemah : Ramlan. Jakarta: PPM
Basri, A. F. M.,& Rivai, V. (2005). Perfomance Appraisal. Jakarta:PT Raja Grafindo
Persada.

George, J., & Jones, G. (2002). Organizational Behavior (3rd ed.). USA: Prentice-.
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