The theory, research, and practice of Human Resource Management (HRM) has evolved considerably over the past century, and experienced a major transformation in form and function primarily within the past two decades (Ferris et al, 1999). This tremendous transformation is driven by the outcome of globalization, growth and rapid technology changes, and changes in employee’s expectation, among many. Hence, the right skill in managing HRM is fast becoming one of the emerging company’s current issues. Professionals in this department of a successful business must be talented and capable in dealing with employee’s issues to be able to focus in performance management, which is a deep concern for HRM. This paper aims to cover the particular aspect of Performance Appraisal Issues and Challenges in the performance management to manage a globally responsive business in today’s immense businesses.
Performance appraisal has immense research debates up to today and covers an important point of view, which is the Employees – the people of the organization. Although many developments have been derived from many research works, there is still room for advancement to proceed to a better effective performance appraisal management. Despite the progress that has been made in this section, the paper highlights the following issues that still need to be considered in the context of running a successful Performance Appraisal procedure. 1) Instrument Problems – includes problems related to the appraisal forms for evaluation 2) Employee and management issues – includes employee situation during performance evaluation and lack of management commitment 3) Compensation, benefits and reward issues – employees impact on their salary and benefits
This yet highlights another subject of further concern in the context of HRM effectiveness. There are two standpoints of HRM effectiveness in need of theoretical and empirical attention: (1) The effectiveness with which