December 15, 2013
While nobody particularly enjoys them, performance appraisals are a beneficial tool used by organizations. An appraisal evaluates not only the employee's performance but also his potential for development. As stated in the text, “The main objective of performance appraisals is to evaluate employees' work performance” (Youssef, 2012). Performance appraisals also show the success and efficiency of achieving organizational goals and objectives and provide necessary feedback to employees that will help them keep on track. This paper will show how effective performance appraisals can increase employee performance, the strategic advantages of performance appraisals, potential forms of bias within the appraisal system, and how performance appraisals can contribute to the achievement of strategic objectives. A performance appraisal is a process in which a rater or raters evaluate the performance of an employee. Feedback may occur throughout the workday, but many organizations also have a more formal process of providing feedback to employees. As stated by Jonathan Segal, “The performance appraisal lets top performers know, in a concrete way, how much they are valued by the organization. As such, it is a necessary component of a comprehensive employee retention program” (Segal, 2000). A few of the benefits those appraisal systems can provide are: communicating deficiencies, ensuring consistency, distinguishing among employees, recognizing valued performers, and communicating strategic vision. The performance appraisal process requires supervisors to take note of what is lacking in employee performance at least once a year. Without this process, supervisors may be hesitant to tell an employee that their work is not up to standards. It may also increase the potential for consistency by ensuring that all similarly situated employees are evaluated on the same criteria. Since a...
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