This paper should include sections on the strategic advantages of performance appraisals, potential forms of bias within the appraisal system, as well as how performance appraisals can contribute to the achievement of strategic objectives.
Performance appraisal is considered a key tool for managerial needs of today’s organizations and is the process by which organizations evaluate job performance. A performance appraisal system usually requires a manager to rate each employee’s performance according to performance criteria’s that have already been established over a period of time. Performance appraisal systems also provide a basis for planning improvement as well as means for determining merit increases, transfers and even dismissals. The most important purpose or goal of the appraisal is to improve performance and hence productivity in the future. Performance appraisals allow employees to see where they are at and managers can get valuable information from employees to help them make employee's jobs more productive. As a result of appraisals, managers’ control over work and results may increase, problems can be identified early, employees are motivated by being allowed to input into and own their objectives, enhances communication, objective feedback given back to employees, facilitates decision making in regard to pay scale and promotion, centralized record of performances.
Some strategic advantages of performance appraisals are that it can provide a record of performance over a period of time. Meaning that if you have been on the job for 5 years and the current appraisal is not up to par the employer can go back and look at past appraisals and see if it’s worth it to fix the problem to keep you or let you go. They provide an opportunity for a manager to meet and discuss performance with an employee. In larger companies an HR manager may hardly ever see the employees; by doing the performance appraisal it allows for a one on one with each employee....
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