Why Is Performance Appraisal Important?

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Why is performance appraisal important?
Performance appraisal is a formal system of measuring, evaluating and influencing an employee on job related issues, behavior and outcome.

The objective of a performance appraisal is to determine an employee’s productivity and to determine if his/her productivity can be improved. From the employee’s perspective, it is a time when they are informed if they are performing well or not and what corrective action needs to be undertaken and if they have achieved their objectives.

From the company’s perspective, it is aimed to identify any lapse on organizational standards of the company and if feedback is necessary. It is also to ensure that people are accountable for their organizational responsibilities. PA plays a significant role in organizational development and growth as employees appreciate over the years unlike assets which depreciate over the years.

PA provides an opportunity for supervisors and subordinates to have face to face discussions of important work related issues; conform on work activities and goals, identify and correct existing problems and encourage better future performance.

There are various types of PA used such as rating scale method, ranking method, comparison method, forced distribution method, management by objective method

2 uses of PA

Training & development
Excellent opportunity for supervisor and subordinate to recognize and agree upon individual T&D needs. PA can make the need for training more pressing and relevant by linking it clearly to performance outcomes and future career advancement. Eg jowis supervisory courses

Recruitment and Selection
PA can be used to monitor the success of the orgn’s recruitment and selection practices eg. Employees performance hired for the past 2 years. Appraisal data can also be used to monitor the effectiveness of changes in recruitment strategies. On a yearly data related to new hires it is possible to assess the general quality of the...
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