Performace Appraisal - Essay Example

In fact, the major challenge with performance appraisal is the inability to address the psychological issues associated with employee satisfaction. The current systems do not evaluate the employee’s psychological contribution to the organization. The increase in wealth creation by academicians may not be considered in the performance appraisal leading to serious challenges in addressing the sensitive issues of employee retention and satisfaction. Performance appraisal faces several challenges, especially when handling academics as knowledge workers in the institutions of higher learning.

The challenge is further compounded by globalization and the free transfer of the knowledge employees. The increased competition of knowledge-based labour globally has affected the perception of the employees. Therefore, the psychological evaluation of performance appraisal systems is necessary. If employees are satisfied that the appraisal system captures issues that are important, it will be easier for the employees to be satisfied and thus reduce employee turnover. In many countries, knowledge may not accord the value that it deserves leading to serious challenges in employee retention.

Coupled with globalization, employees are able to evaluate the performance appraisal systems in relation to the organization's appraisal system which leads to high employee turnover.