Importance of Performance Appraisal

Topics: Management, Performance appraisal, Human resource management Pages: 3 (882 words) Published: January 29, 2014
Performance Appraisal is very important in an organization. This paper outlines its importance and explains why it sometime fails.

Developing an environment that will consistently produce cost-effective, high quality and schedule-beating output is a key step in the success of any organization. Performance appraisal is evaluating/comparing an employee's actual performance with his/her performance standard. It is important for all organizations to have an effective performance appraisal system because it plays a crucial role in an organizations effort to gain a competitive advantage.

Staff, managers and the organization must see performance appraisal as a process of attempting to meet their needs. The staff must see it as a means for development in terms of assessing job performance to provide training for self and career development. It is important that employees raise issues that are affecting efficient performance so that managers, within the planning process, can take appropriate actions after careful evaluation. After the appraisal process is completed it is important that certain results are achieved i.e. employees are to gain a better understanding of their roles, understand more clearly how and where they fit in the wider picture, get an insight into how their performance is perceived, gain an improved understanding of their strengths and weaknesses and developmental needs as well as an understanding and agreement to their objectives for the next year. The appraisal process is important to managers; it provides an opportunity to identify any potential difficulties or weaknesses, which may prevent maximum output. Resources that are available will become visible so that decisions can be made as to whether too much is available and could end up wasting or if too little is available and could prevent timely completion of work. Managers also get a chance to assess their own role as managers to see how effective their attempt for better management is...
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