Significant Of Performance Management And Appraisal

Published Date: 02 Nov 2017

Contents

Introduction ------------------------------------------------------------------------------- 1

Content ------------------------------------------------------------------------------------2

Description of Performance management & Appraisal----------------------- 2

Relevant concepts of Performance management & Appraisal--------------- 3

2.2.1 Steps in performance management & Appraisal-----------------------3

2.2.2 Accurate performance measures-----------------------------------------3

2.3 Significant of Performance management & appraisal------------------------ 5

3.0 Case Development ----------------------------------------------------------------------6

3.1.1 Advantages of Performance management ------------------------------------7

3.1.2 Disadvantages of performance management----------------------------------8

3.2.1 Advantages of the performance appraisal-------------------------------------9

3.2.2 Disadvantages of the performance appraisal---------------------------------10

4.0 Recommendation ----------------------------------------------------------------------12

5.0 Conclusion ----------------------------------------------------------------------------- 16

Reference List ------------------------------------------------------------------------------17

Introduction

Regarding the human resources management, there are two important systems which are performance management and appraisal. Performance management is a system to identify the ways to achieve the organizational through to assessment and feedback to improve the performance. The main purpose of performance management is to ensure that all the employees or team of departments are working together to achieve their goals. It relates to measuring and improving the value of the workplace in accomplishing strategy of a main person.

Performance appraisal is a process of adopting, recording and analyzing the information about the value of the employees in the future. It is focus in measuring and improving the actual performance and the potential of the employees. The managers should be reviewing the performance of the employees on a continuing basis.

Performance management systems are the most focus in business today. Even though the entire HR department is distributed to training, recruitment, performance appraisal and the performance appraisal just occurs in a period time. Performance management is an uninterrupted, continuous, and sustained progress. Each part of the organization such as training, appraisal and award are all related to the purpose of continuous organizational effectiveness. The worker should be able to achieve a standard that required of the performance management. So, worker needed training to improve their working skill. With performance management systems, training is directly related to achieving organizational effectiveness. When the performance facing problem and have not solve, poor performance management making the loss in productivity. The effective performance management is a beneficial tool to enhance the business performance.

On the other hands, performance appraisal is the key to success of performance management. Although it is just one component of performance management, but it is affect the strategic plan of the organization. It focuses on the most firms of individual employees. An effective of the appraisal systems is to evaluate the plans for development, goals and objectives of achievement and initiates. Performance appraisal is the activity of dislike with employees. Actually, a manager needs to provide feedback, encourage worker improvement, and development needs. So, it served many purpose in today's competitive marketplace due to improve results, and more efficiency.

Some main point for the objectives of the performance management is to help the employees identify their knowledge and skills which is required for performing the job efficiency. It can help the employees performing the right task in the right way. In addition, it finds out the barriers to effective performance and solves it through monitoring or coaching. Performance management also can enable the employees achieve a supervisor standard when perform the job.

The main purpose of the performance appraisal is to determine the gap between the actual and desired performance. Besides that, it helps the manager to strengthen the relationships and communication with the employees, and reduce the dissatisfaction or complaining of the employees. It also needs to provide the expectations and responsibilities of the role more clearly to perform by the employees. In some time, appraisal systems provide the information to promote in the personal decisions in the organization.

Content

2.1Description of Performance management & Appraisal

Performance management is the process of identifying, measuring, managing, and developing the performance of the human resources in an organization. Basically company use performance management to identify how well employees perform and their future potential. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product of service, as well as many other areas.

On the other hand, performance appraisal is the ongoing process of evaluating employee performance. Performance appraisal is more focus on measuring and improving the actual performance of the employee. Given a period of time, performance appraisal able to review and access the performance of an employee systematically. It helps an organization to analyze an employee achievement and evaluate his/her contribution towards the achievements of the overall organizational goals.

2.2 Relevant concepts of Performance management & Appraisal

2.2.1 Steps in performance management & Appraisal

The performance management & Appraisal itself contains four steps. First of all is job analysis. Management should have a brief concept of what a job consists of an employee before evaluating their performance. An employee task must be based on the organizational mission and objectives, the department.

Secondly, develop standards and measurement methods. Performance should be accurately measured so employees will know where they can improve. By knowing where to improve, employee could develop some new skill. A success performance management & appraisal should include element of valid and reliable, acceptable and feasible, specific and based on the mission and objectives.

The third step is informal performance appraisal. It consists of coaching and disciplining. Performance management & appraisal should conduct more frequent in order to encourage and motivate employee. A regular feedback to employee is important to let them know how they are performing the task.

The last step of performance management & appraisal is preparing for and conduct the formal performance appraisal. We review and compare employee’s actual performance to the standards during a specific given period in this step.

Finally, the performance management & appraisal move to feedback sessions. In this session, the manager and employee discuss the employee’s performance progress and make plans for employees about development necessary.

2.2.2 Accurate performance measures

There are four characteristic combine in accurate performance measure that we had mention in part 2.2.1. That is valid and reliable, acceptable and feasible, specific and based on the mission and objectives.

First, we will discuss the valid and reliable elements. Valid and reliable is an important part in accurate performance measure. Before a company runs the performance appraisal process, they should make sure that our performance management tool is valid and reliable. We can pull out and removal of the OUCH test as a quick measure to ensure that the performance management and appraisal process are fair and equity. The OUCH test is standing for Objective, Uniform in application, Consistent in effect and has job relatedness; we still need some detail which is validity and reliability. For which the measurement is not valid and reliable, we will not consider using it.

The second characteristic is acceptable and feasible. Acceptability means that the use of measure is satisfactory or appropriate to the people who must use it. Besides, it is necessary to include that whether or not the evaluation is feasible in acceptability. The method of evaluating employee must be acceptable by employee and feasible by the management. For example, the performance evaluation form is two or three pages long and covers the major aspects of the job that is being evaluated, and both managers and employees believes that the form truly evaluates performance measures that identify success in the job, then they are likely to feel that tool is acceptable and feasible.

Furthermore, specific is also an element that necessary for the performance measures. We need the detail of evaluation to identify that the process what is going smooth and what is not. Specific means that something is clearly identified, or defined well enough to understand the issued which all involved in process. However, the word specific also means that the form provide enough information for employees to know that what level of performance a particular employee can be achieved within a well- identified job through the performance appraisal.

We can use performance appraisal to improve the performance of our employees by creating specific measures. The employees need to understand what they are doing successfully and what they are not. Most of the time, the evaluation forms modify employee behaviors was too general. It is because organization wants the form to evaluate a large number of different types of jobs. In case, this creates a significant problem in the performance appraisal process.

Lastly, organization should base on the mission and objectives when creating a performance appraisal. The performance management system should leads organization to accomplish their mission and objective. Performance management process will guides employees toward achievement of the company’s mission and objectives over time. As manager in the organization should make sure that this relation will allow company to strengthen employee behaviors to achieve organizational goals and to identify what employees are doing actively. Otherwise, there should be concern about the employees sometimes would unintentionally harm company ability to reach those goals.

2.3 Significant of Performance management & appraisal

The first major reason for conducting performance appraisal is to provide an opportunity for formal communication between management and the employees concerning how the organization believes each employee is performing. By conforming that two-way conversation happen between the manager and the employee, organization could prevent the majority of performance problem. Besides, employees could also have a complete understanding of what is required, and when it is require. In performance appraisal, the communication process requires that manager communicate with the employees provided them information about how they should accomplish their job. Behind, the process also provides the opportunity for the employees to speak to us concerning factors that inhibit their ability to successfully perform for the organization.

That is so many factors in a job that management may not know, there was including lack of training, poorly maintained equipment, lack of tools necessary to perform, conflict within work groups, and many other things that management may not see on a daily basis. In this case, performance appraisal process could create an opportunity for employees to communicate with management for correcting the problem.

Next, conduct performance appraisal also important in decision making. The purpose of performance management & appraisal is to allow management makes decision for employees within the organization. Manager usually will make their decision based on information get from the performance appraisal. Accurate information is necessary for management decision making and assist the manager to improve organizational productivity. Company use information from annual performance appraisal to make evaluative decisions concerning our workforce including pay raises, promotions, demotions, training and development, and termination. There gives them the ability to make decision that can enhance the firm productivity while management has valid and reliable information concerning individual within each division or department.

The third major purpose for performance appraisal is to provide motivation to employees to improve the way individually working for developmental purposes, which also will improve organizational productivity in overall. Company evaluative decisions should lead to development of employees. Moreover, it may also develop the organization. For example, machine operators having trouble keeping their equipment in working order and make the decision to train the employees to develop new skills and improving the performance, as well as better utilizing the resources to improve organizational performance.

Lastly, performance appraisal may be helpful in predicting the performance of job applicants. For example, it may be determined that a company’s successful employees exhibit certain behaviors when performing key tasks. These data may provide a standard for evaluating. In this instance, determination of the selection test’s validity would depend on the accuracy of appraisal result.

Performance management & appraisal is significant in different area such as communicating, decision making, provide motivation and also in selection or recruitment. An organization should do well in performance management and appraisal in order to accomplish their objectives and goals.

Case development

It is well-known fact that COSWAY COPRORATION BERHAD is becoming the largest Network Marketing companies in Asia and at the same time which are the subsidiary of BERJAYA GROUP. Its business began in December 1979, and acquired by Berjaya Group in year 1994. Besides that, COSWAY had provided over 2000 consumer products in this global market. It also have a huge and admired authorized capital of RM500 million and a Paid-up capital of RM155 million.

On the others hand, COSWAY’s core products are health and nutritional supplements, cosmetic and fragrances, food and beverage, home and car care, water filtration system and so on. COSWAY gets the supply of its product from independent manufacturers, leading researchers, ingredient suppliers and others. The Group is able to capitalize on the advanced technological and scientific innovations of the global manufacturing and research community.

Apart from that, COSWAY retain its good reputation by implement one effective business and marketing strategy –‘’5 Principles of Marketing’’, which are product, price, promotion, physical distribution, and plan. Throughout these principles, they also aware of the needs of their customers and provide them with excellent value-for-money products and services. It is also essential for COSWAY to provide a caring, enriching and rewarding environment for their members and employees in order to reach a win-win situation to flourish their business with flying color.

3.1.1 Advantages of Performance management

First of all, the advantage of the performance management is Goal orientation. As far as we know, an organization can use a performance management system to guide all the employees and managerial staff direct toward to the organization’s objectives. This is because employer and employees can fully understand and support the reasonable expectations through an establishment of the performance management. For this reason, everyone in the organization can eliminated the frustration in the working environment. Other than that, this vision can inform the employees about their contribution to the company in order to increase their productivity in the workplace. According to the SWOT analysis of COSWAY Company, we can know that the company has set up a clear, measureable, time specific, and challenging but attainable goal in the company. For example, the objective of the company is not to over-dependent on a single product. So COSWAY Company can outshine the others competitors to gain more sales and profit since it provide many daily products in our social live.

It is true that a performance management can improve the stability on the Employees’ reward. With a performance management system, the compensation and rewards of the employees will be distributed on a fairer basis. Basically, the COSWAY Company need to know what the award acknowledgement of a salesperson is possess and how much the salesperson has been improved in his or her job tasks. Hence, they can distribute the compensation among the salesperson by following the data. Carried out this system, employees who work in the company will be satisfy with this system. It is because this system can eliminate favoritism and enjoy an equality treatment in their working environment, so that they can willingly dedicate themselves to their job.

It is heartening to know that performance management provide a Benchmark for the employees’ performance. The performance management can suggest a consistency, standardized measurement to assess the productivity level of the employees and compare their performance to the benchmark. Assuming that, COSWAY Company can compare their each employee’s sales performance with the idealistic sales of each person ought to be achieved. Hence, employees can use this as their motivation or encouragement to achieve the level of respect that they desired. Besides that, employees that get through this process will know how importance their roles in helping the company to accomplish a specified goal.

The last advantage of the performance management is that it can pinpoint performance problems within the organization. Initially, performance management allows managers to take immediately and prompt action to overcome the identified problems to make sure it won’t affect the organizational process. Because of this, the company can be under a smooth transition and operational fluency in and in order to achieve the company’s missions and visions. In COSWAY Company, they can avail the performance management to find out what are the reason that will affect their businesses in the future. After some investigation and market survey, they finally found out that the lower price strategy can immediately help the company in order to overcome all the problems effectively.

3.1.2 Disadvantages of performance management

There is no escaping that the fact of performance system apply in an organization will cost highly and time consuming. This is because the organization must have a lot of administrative work, patience and time to construct a good performance management in the organization. For example, the organization ought to conduct more extensive training; retraining and career development workshops for every division and each employee level in order to improve their skills and knowledge required as well is up to the par. Thus, it will become a costly process within the human resources department, finance and organizational development. In references to an advantage of performance management of pinpoint out the problems in the COSWAY Company, it cannot be denied that the company needs to spend more money, human capital and time to complete their market survey.

Usually, there will be a disadvantage of performance management within the organization-Internal competition. Performance management will lead all the employees in the organization to compete with each other in order to attain the highest evaluation. So it can be said that, this system will create competition among workers and indirectly affect the workplace culture in the organization. To be frank, the bottom line salesperson in the COSWAY Company will always compete with their colleagues who are in the same job position with them. This is because salesperson desire and attempt to achieve a high rating from their supervisor and to get the highest job status, job position and salary. So they don’t mind to compete with each other in the workplace such as deprive the sales of their colleagues. Unfortunately, this system will create two groups of workers, winners and losers in the organization.

Furthermore, another disadvantage of the performance management is - Bureaucratic organizational structure. Apparently, COSWAY Company will stop looking for new employee as they will focus on training the incumbent employees to become more productive due to the planned performance management. For example, a project as planned must performed by one team, but now the company integrate 2 teams together to perform the task in order to achieve the goals easily and effectively. So the financial structure of the organization will be affected.

It is to be regretted that the employees in the organization are restricted innovation. Actually, they need to perform their assigned task according to their work plan for the year as that is set in the previous time. Therefore, employees will find it difficult to carry out their new ideals or innovations to imply into their project. To quote an example, sometime the salesperson will have some different concept with the company on how to distribute the company products. Supposed the COSWAY company define a product must promote with the customers via face to face, but the salesperson believe that the product can get the highest sales demand if this product is established through e–commerce aspect (eCOSWAY). Besides that, employees and supervisor should agree with the performance agreement which is determined how the performance evaluation will be conducted. Supposedly this process is not carried well, and then there will block the ambitions of the organization and it will procrastinate to achieve the organization’s goals as planned.

3.2.1 Advantages of the performance appraisal

Speaking of performance appraisal, it can allow managers to help employees with Career Development. In case, managers are getting opportunity to provide the employees with feedback of their performance. Similarly, the employees and teams are evaluated by discuss how well they are performing their assigned task. After that, managers must according to each of the employees’ performance to develop a plans with specific tasks in order to help them develop in their career and meet company’s goals. Normally COSWAY Company will review the sales of a salesperson after one month, and then the first line manager will set a challenging achievement target for that salesperson to be achieved at the next month sales.

Apart from that, an organization can depend on performance appraisal to constitute a Motivation to their employees in the organization. This is because the employees who received a positive feedback from the evaluator will be more energetic and enthusiastic to work hard for the company in the future. For example, a salespersons’ morale and productivity will increase immediately when they are recognized by the line manager in front of their colleagues during the evaluation period, this is because they feel very proud on his previous sales. Besides that, performance appraisal can help a salesperson to be promoted to a higher position since he or she is recognized by the company.

Another advantage of the performance appraisal is – Documentation. Documentation means that it provide a document of employee performance over a specified of time. Therefore, it is significant and valuable records that can use to proof that company policies and company rights have been conform by employee. Thus, it can also be used in any legal proceedings to explain why certain actions were taken against the employees. In practice, COSWAY Company needs to classify all the salesperson’s achievement about their sales in order to make it as an evidence to prove to them. Nevertheless, salesperson must keep all these documents for justification of an achievement which is obtain at the previous. So that they can put these documents on their resume if he or she looking for another job in future.

It must be stressed that performance appraisal can also provide as a Warning to the organization. Through the evaluation, the company can be aware and scan within the organization to identify whose performance is starting to fall short in certain areas. For this reason, the company can meet with those discourage employees and provide them some advises and counseling in order to help them improve their performance. Through the performance appraisal, managers or evaluators can point out problems and offer some solution to employees who perform barely satisfactory on their recent tasks.

3.2.2 Disadvantages of the performance appraisal

Basically, the COSWAY Company will encounter a problem to assess all the employees in the performance appraisal which is due to evaluator’s Personal Bias. It cannot be denied that the performance appraisal is based on the human assessment, so the evaluator will intentionally or unintentionally to wrongly assess their salesperson as well. This is because it will be affected by the natural factors or salesperson’ personal characteristic such as salesperson’ race, religion, gender, disability or age and et-cetera. If the company have such incident happened in the company, then it will lift up the discrimination issues within the company.

Besides that, there is another disadvantage of the performance appraisal – Time consuming. This is because managers or evaluator must spend more time in the process of appraisal. For instance, COSWAY Company managers or evaluator need to create the questionnaires for the employees, collect the forms from them, interview the employees and lastly try to explain the result of their performance in order informed them with the result of the assessment. So these processes need to carry out step by step by the company. This is definitely a time consuming matter for the company.

To top it all, performance appraisal will have a negative relation with the office dynamics. Why should we say like this? This is because those employees who are get the lower appraisement will deliberately take retaliation against their coworkers who are get a good compliment from their evaluator or manager. This is slightly same with the disadvantage of performance management which is created internal competition within the company. To quote an example, salesperson wouldn’t cooperate and work as a team with their colleagues when they are awarded an unfair evaluation. So, all of this situation will cause the company facing some difficulty on improving the organization’s goods and services quality.

Other than that, there will be saying the evaluator is Arbitrary to made an appraisement. To be frank, evaluator often giving a leniency appraisement which is an underserved high performance appraisal rating to an employee ; or giving a strictness appraisement which is unduly critical of an employee’s work performance. Against the leniency, COSWAY Company will find it difficult to reassign a poor performing salesperson if he or she has a record of satisfactory evaluations. As against the strictness, those who suffer under this treatment will be found difficult in raising salary and position. For this reason, such discrimination within the organization will become a problem and it need to overcome as fast as possible.

A small conclusion in for above issues: It is imperative that a good performance management will established a good performance appraisal. So, if a company desired to accomplish those businesses goals as good as they planned, they must strategically incorporate performance management into their strategic plan as well.

Recommendation

Performance Management

Performance Management is a systematic approach using by company to set up the goal of organization and identify the mean to achieve it by employees. There are several advantages and disadvantages stated above that COSWAY Company by using the Performance Management to process of achieve the objective of organization. In order to improve, there are some recommendations that can be used to improve and solve the issues of Performance Management.

One of the advantages of performance Management is Goal Orientation which is guiding the employees direct toward to the goal of company and set up the objective. As mentioned above, COSWAY Company has set up a clear and specific goal which is not to over-dependent on a single product. The goal is really clear and measureable, but in order to improve the company performance and to ensure the company has a better future, we should change the goal. The goal that COSWAY Company set before is just an objective of a department but not the overall objective and as view of COSWAY Company right now we clearly visible that COSWAY Company had been achieved it long time ago. So, in order to improve organization become more effective COSWAY Company should set up a new expectation. COSWAY Company should evaluate the achievement of goals previously established, after that set up the new objective and make sure all the employees participate during setting the new expectation. As the result of this will make employees clearly understanding the new goal and perform well on the job. Other than that, if employees are participated setting the new expectation, they will only set the goal in capacity range that the employees may achieve it but make sure the goal not too easily to accomplish.

Secondly, based on one of the advantages of Performance Management, it can provide a Benchmark on the performance of employees. That is a good approach because it sets the basic of performance improvement aimed at enhancing competitiveness. Employees can do well under Benchmark but cannot be the best because all of them only performing at the same stage. It is benefits to company but it will also as loss to the company because due to Benchmark of performance will make employees limited to the same stage of performance, mean it will never change, even though it will not down turn on performance but it will not improve also. In order to make the employees more productive, company should keep changing the level of Benchmark and also increase the adoption and value of Benchmarking. As a result, it won’t limit the employees to be in the same level and also encourage them to keep improving. Keep changing the level in a short period of time will also cause the employees to keep changing in order to be more productivity. Moreover, company may set some target for employees such as if someone else performs the task with the most creative and different with other may receive compensation by the company. By this, it will help employees to accomplish their task in the different way. Summarize, it may help company improving and company may also observation to which employee more productivity.

There are several advantages of Performance Management but also will have disadvantages. One of the disadvantages is Performance Management will cost highly and time consuming. Cost highly and time consuming because of COSWAY Company conduct more extensive training and career development for employees to train them become more productivity and effective. We will not recommend that cut off the training because training is really necessary for every employee. However, we would recommend cutting down the training fees and providing training with minimal expenditure and more effective that may help employees advanced their skill and knowledge. COSWAY Company may conduct the online training for employees; they may take courses electronically via computer. Online training increase the quality of training while incurring little to no cost, and also time saving because online training may conduct it during anytime. Besides that, online training may determine employees whether they had improving since the online training will keep the record of every training. In addition, COSWAY Company may conduct In-house training because it will also reduce the cost of training. In-house training is not only reduce the expenditure of training but also may help the overall organization improve. Due to in-house training which is train by the department supervisor to the workers of the department, by this training not only carry on low cost and quality training but it also help to remind the supervisor the skill and knowledge have to update. As a result of this, company can conduct Train the trainer programs to send the supervisor to be trained on a particular topic after that supervisor may bring on the knowledge and train the employees same skill, therefore the benefits of this training program not limited to low cost but rather update the knowledge of supervisor.

Performance Appraisal

Performance Appraisal is the tool to evaluate on a team or an employee’s job performance and identify the problem areas over a specific period of time. Performance report are useful in identify the issue and for developing long-term business objectives. As the above described, there are some disadvantages of the Performance Management. Therefore, for the purpose of resolve the problem there are some recommendation on this section.

COSWAY Company gives the opportunity to the supervisor or manager to evaluate employee’s performance on the task but due to the Personal Bias, the Performance Appraisal will become an obstacle to improve the organization. This is because it will affect by natural factor or supervisor personal attitude. To solve this problem COSWAY Company may conduct a calibration process which is evaluate employee’s performance assessments with match a certain distribution such as the supervisor’s evaluation outcome accounted for 40% and colleague evaluation outcome accounted for 20% and other accounted based on the task had completed performance by the employees. By using this process, it will not only solve the personal bias problem but also can evaluate the effectiveness of employees from different portion. This will lead the COSWAY Company to determine the productivity employees and reward.

The last recommendation is to recommend about the Performance Appraisal will have a negative relation with the office dynamics. For those employees who are getting lower appraisement will not cooperate in work with the colleague that gets a good appraisement. If COSWAY Company did not resolve this problem, it will be a burden on improving the company. Thus, in order to solve this problem company should communication with the employees and provide them counseling to the employees who have the negative emotion toward the organization. In counseling section, counselor may give them some suggestion to encourage them put effort on the performance a task and trying to co-operation with other workers during a team work. Besides that, company may conduct training to the employees who was get lower appraisement in order to help them add value by themselves and increase more skill and update the knowledge, therefore they may more confidence. Furthermore, company may order those employees who get good appraisement to correct the error made by them in this performance and also give them some opinion and also encourage them.

5.0 Conclusion

As we know that, performance management is a process of identifying and developing the performance of the human resource in an organization, performance appraisal is a process of evaluating the employee performance. Performance management and appraisal contains of four steps. Such as job analysis, develop standards and measurement methods, informal performance appraisal, and prepare for and conduct the formal performance appraisal. Although these two systems is many advantages for the organization, but there still many problem exists.

COSWAY is one of the companies who are still using these two systems. When COSWAY applies the performance management and appraisal, there were some advantages. At first, performance management advantage is the goal orientation. For COSWAY company can lead to gain more sales and profits since it had provided many daily products. Another one, performance management can improve the stability on the employees' reward. Employees who work in the company will satisfy with this system because it can eliminate favoritism and enjoy an equality treatment in their working environment. The last advantages of performance management are that can pinpoint performance problems for the organization. It can help the COSWAY to find out the lower price strategy and overcome the company problems effectively.

On the other hand, the advantages of performance appraisal are career development. It can help the company to develop their career and meet company goals. Seconds, there is documentation. It provides a document of employees’ performance over a time. For the COSWAY company, they can put these documents when he or she ever looking for another job in future. Performance appraisal also provides a warning to the organization. Through this system, managers can point out the problems and offer them the solution lead to perform well

.

When apply the performance management systems, it also face some disadvantages. It will cost highly and time consuming. Because of COSWAY company more extensive training and career development for employees to train them. So, we give suggestion to cut down the training fee and provide training with minimal expenditure and effective that may help employees advanced their skill and knowledge. Another disadvantage is bureaucratic organizational structure. The financial structure of the organization will be affected due to the COSWAY company will stop looking to hire a new employee as they will train the incumbent employees to become more productive.

The disadvantages of performance appraisal are personal bias. It will raise up some discrimination issues within the company because it cannot be denied that the performance appraisal is based on the human assessment. The last is a negative relation with the office dynamics. For this function will cause the company a burden on improving the organization’s goods and services quality.

In conclusion, performance management and appraisal affects the structure or personal quality of the employees. Based on that problem, we should recommend it be able to improvement issues. When solve all the problems, the company which apply these two systems can improve the employees performance and productivity effective.