Performance appraisal is a systematic and periodic process that helps managers to assess their employees' job performance and productivity in relation to already established individual and organizational objectives and goals. The achievements of organizational goals are directly proportional to its people. The more talented the people and better they are managed and coordinated towards these goals the greater the chances of organizational and individual success. So a mature appraisal is essential for both individual employees and for organizations.
The main features that make the performance appraisal essential are as follows;
Performance Feedback - Most of the employees are eager to know that how well they are performing currently and how better can they perform in future. Through this feedback they try to improve their performance to get future promotions and benefits. This also helps employers to motivate their employees and enhance their performance.
Training and Development Decisions - Lower performance rating of an employee indicates that he requires training and mentoring. Therefor employee seeks training workshops to improve her skills and employers arrange training or a mentor to help individual improve her performance so that productivity objectives may be achieved. Similarly, higher rating of appraisal suggests employers that employee is capable enough to perform at a higher position and is given training for next level position.
Validation of Selection Process - Performance appraisal is a source of validating the tools (interviews, analytical test etc.) used during the hiring process. Through these tools performance of an applicant is predicted during selection process. A proper appraisal helps validate these tools and to improve selection process.
Promotion Decisions - Performance appraisal used to segregate high performing and low performing employees therefore helps employer to select the proper person for promotion. And motivate employee to improve her performance to become eligible.
Transfers - Transfers usually involves change of responsibilities. Performance appraisal is used to identify the employee who can take these responsibilities. Therefore it helps take transfer decisions.
Termination Decisions - There are circumstances when organization needs to lay off its employees. It is wise to lay off the weakest performer first. Performance appraisal is only the way that helps employer to sort out employees. A poor performance history also helps employee to accept the crucial decisions and avoid to be targeted.
Rewards and Benefits - Decision The better the performance the higher the reward and benefit. Performance appraisal helps to identify the individual's contribution in the overall productivity. Therefore it helps management to take the reward and benefit decisions on merit.
Career Planning and Development - Without knowing that who is capable enough for being promoted, demoted, transferred or terminated, management cannot make employment plans for the future. The information derived from the performance appraisal helps management to take decision for the career development of employees.
Performance appraisal benefits the company as well as employees. It increases understanding between management and employees, increases job satisfaction and improves employees' sense of loyalty toward the company. Performance appraisal helps employees to understand that how their role in the organization contributes to the company's overall success, therefore increases employee's morale. All of these result as higher productivity among employees, which improves organizational productivity.
The main features that make the performance appraisal essential are as follows;
Performance Feedback - Most of the employees are eager to know that how well they are performing currently and how better can they perform in future. Through this feedback they try to improve their performance to get future promotions and benefits. This also helps employers to motivate their employees and enhance their performance.
Training and Development Decisions - Lower performance rating of an employee indicates that he requires training and mentoring. Therefor employee seeks training workshops to improve her skills and employers arrange training or a mentor to help individual improve her performance so that productivity objectives may be achieved. Similarly, higher rating of appraisal suggests employers that employee is capable enough to perform at a higher position and is given training for next level position.
Validation of Selection Process - Performance appraisal is a source of validating the tools (interviews, analytical test etc.) used during the hiring process. Through these tools performance of an applicant is predicted during selection process. A proper appraisal helps validate these tools and to improve selection process.
Promotion Decisions - Performance appraisal used to segregate high performing and low performing employees therefore helps employer to select the proper person for promotion. And motivate employee to improve her performance to become eligible.
Transfers - Transfers usually involves change of responsibilities. Performance appraisal is used to identify the employee who can take these responsibilities. Therefore it helps take transfer decisions.
Termination Decisions - There are circumstances when organization needs to lay off its employees. It is wise to lay off the weakest performer first. Performance appraisal is only the way that helps employer to sort out employees. A poor performance history also helps employee to accept the crucial decisions and avoid to be targeted.
Rewards and Benefits - Decision The better the performance the higher the reward and benefit. Performance appraisal helps to identify the individual's contribution in the overall productivity. Therefore it helps management to take the reward and benefit decisions on merit.
Career Planning and Development - Without knowing that who is capable enough for being promoted, demoted, transferred or terminated, management cannot make employment plans for the future. The information derived from the performance appraisal helps management to take decision for the career development of employees.
Performance appraisal benefits the company as well as employees. It increases understanding between management and employees, increases job satisfaction and improves employees' sense of loyalty toward the company. Performance appraisal helps employees to understand that how their role in the organization contributes to the company's overall success, therefore increases employee's morale. All of these result as higher productivity among employees, which improves organizational productivity.
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