Performance appraisals are used in modern day as an evaluation of the observance of an employee’s work performance though a company’s set time period. When doing anything meaningful, humans have a natural desire to know how they are performing. In particular, if they are doing a good job, they need to know if they are doing horrible, great, or somewhere in between. One of the best potential ways of providing this feedback is through the use of performance appraisals. Some appraisals are done quarterly, some are done semi-annually, and others are done annually. By definition, “performance appraisal is the process through which employee performance is assessed, feedback is provided to the employee, and corrective action plans are designed” (Yourself, 2012). If properly designed and administered, a performance appraisal provides a great benefit to the employee, supervisor, and the company itself. There are strategic advantages of performance appraisals, forms of bias within these appraisals, and effects on the achievement of strategic objectives from appraisals. Performance appraisals can provide strategic advantages at a multitude of levels. “PM [Performance Management] identifies organizational goals, results needed to achieve those goals, measures of effectiveness or efficiency (outcomes) toward the goals, and means (drivers) to achieve the goals. This chain of measurements is examined to ensure alignment with overall results of the organization.” (McNamara, N.D.) In order to properly administer a performance appraisal, there must be a comparison between performance and organizational goals. This allows the employee the opportunity to completely understand what the company is expecting from that employee. By understanding goals, an employee can focus on ensuring those goals are met. Appraisals also gives supervisors an idea of the weaknesses an employee may have and whether further training needs to be held for professional development....
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