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Importance of Performance Appraisal

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Importance of Performance Appraisal
A major challenge for every business owner or manager is to have employees who are passionate about what they do and constantly strives to perform at their best. Many managers take the integrated approach known as Performance Management, to manage the performance, consisting of setting goals, training employees and then appraising and rewarding them (hrm). It can be explained as a process that consolidates goal setting, performance appraisal and development into single, common system, the aim of which is to ensure that the employee’s performance is supporting the strategic aims. (hrm book 315)..
A performance management system would be only effective when the employees in Mambo are clear about their duties and job standards and the organizational goals so that they work with their full potential to meet organizational objectives.
Mambo should develop a well planned performance management system as it will provide information on taking decision about the promotion and salary of the new as well as currently employed staff members. Moreover it would provide the senior management (Brett and Simone) to review the employee’s work related behaviour and developing a plan for correcting any deficiencies both for manager and employee as well.
During the implementation of the performance management system the organisation has to expressly pay attention to fostering and improving the behavioral factors of performance management, in order to increase the chances of better result by the use of performance management system.
A key element of Performance Management System is Performance Appraisal as it identifies, evaluates and develops employee performance to meet employee and organizational goals
Brett and Simone have to choose an appraisal method so that actual performance can be measured as to what has been set in the organisation. Selecting one appropriate method from many is not easy as. It is

The classification of appraisal methods helps make it more

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