The performance of the employees need to be appraises. The good performance is to be reinforced while the bad performance is to be corrected. Performance appraisal is a process of evaluating an employee’s current and/or past performance relative to his or her performance standard (Dessler & Varkkey, 2011). Performance analysis is critical to the success of the performance management. It is directly reflects the organization’s strategic plan. Performance appraisal, though often being a negative and disliked activity, serves many purposes and has been a high priority for management (Mondy, 2009).
The performance appraisal involves (1) setting work standard for the employees with relevant focus on the important aspects of employees’ job, (2) assessing the employees’ actual performance with these standard to evaluate and determining the accomplishment of the standards, (3) providing feedback to the employees with the aim of motivating them and influencing their performance to eliminate deficiencies and to continue to perform above par. (Dessler & Varkkey, 2011)
Uses of Performance Appraisal
Performance appraisal has two general uses in the organization. One role is to evaluate the employees’ performance to reward them for better performance and/or the make other administrative decision regarding the employees’. The other role is to develop the employee potential to plan employees’ growth opportunity and direction. (Mathis & Jackson, 2010).
Administrative uses: The information from performance appraisal process is used for administrative purpose like personnel decision: compensation, promotion, transfer, dismissal, retention; motivational decision: reward, grades, incentives; human resource planning: layoffs, downsizing, recruitment and selection.
Development uses: Performance appraisal information is the key for the future development of the employees. The management will use this information for the development of the employees
Bibliography: Dessler, G., & Varkkey, B. (2011). Human Resource Management (12th Edition ed.). Pearson Education, Inc. Gómez-Mejía, L. R., Balkin, D. B., & Cardy, R. L. (2010). Managing Human Resources (6th. ed.). Pearson Education, Inc. as Pearson Prentice Hall. Mathis, R. L., & Jackson, J. H. (2010). Human Resource Management (13th ed.). South-Western Cengage Learning. Mondy, R. W. (2009). Human Resource Management (10th Edition ed.). Pearson Education, Inc.