Final answer:
Annual performance appraisals have benefits including structured, documented assessment and setting goals, but can also be stressful and perceived as unfair. To enhance effectiveness, ongoing feedback and methods like 360-degree appraisal may be used, with engagement and actionable post-assessment improvements being key.
Step-by-step explanation:
Benefits and Drawbacks of Yearly Performance Appraisals
Performance appraisals are often conducted annually and serve multiple purposes within an organization. They are a time to review job performance, reinforce positive behaviour, identify areas for improvement, and set goals for the upcoming year. These appraisals can affect an employee's compensation, promotion opportunities, or continued employment, and are also used to assess the effectiveness of training programs.
However, it can be stressful for both managers and employees. Appraisals should not be the only time feedback is provided; ongoing feedback can help employees adjust their performance more quickly and feel more engaged. The annual review can sometimes fail to motivate if perceived as just a bureaucratic hurdle. This is partly because performance appraisal systems can be misused or may not align with an organization's culture, potentially leading to feelings of bias or unfairness.
Annual appraisals offer an opportunity for structured and documented assessment, but can be improved with more frequent, informal feedback. The 360-degree feedback appraisal method is one approach where multiple sources are used for evaluation, providing a more comprehensive view, although research on its effectiveness is ongoing. Being open to feedback, proactive during the evaluation, and taking actions to improve post-assessment can enhance the appraisal experience.