Effectiveness of Executive Performance Management System

Executive performance appraisals are mostly undertaken to let an executive personnel know how his/her performance compares with the superior’s expectations and performance targets. However, the implementation of effective performance appraisal system is complicated by the difficult task of obtaining a truly fair and accurate appraisal of executive’s performance. This research study seeks to determine how the executives of an organization feel about the effectiveness of executive performance appraisal system being implemented. It also attempts to
investigate the accuracy of performance ratings, validity of performance measures and perceived system knowledge and correlation of these variables to the effectiveness of performance appraisal system. A survey was administered on 46 executive personnel consisting of junior executives, senior executives, assistant managers, managers, and senior
managers. Self-administered questionnaires with 5-point Likert scale were used to tap their responses to the variables under study. Data gathered were analyzed using simple descriptive statistics SPSS software. Found out that executives are yet uncertain about the effectiveness of the performance appraisal system being implemented and they are also uncertain about the accuracy of the performance ratings, validity of the performance measures and the perceived system knowledge. Nevertheless the study shows that effectiveness of performance appraisal system
correlates with accuracy of ratings, validity of measures, and perceived system knowledge. It is proposed that training be given to enhance the skills of appraising executives to increase the accuracy of performance
ratings and validity of performance measures. More frequent informal and formal performance feedback and review and clearer linkages of performance appraisal system to other human resource management functions are also proposed.