1. What is Performance Appraisal?
The performance appraisal is the method of evaluating employee’s current and or past performance relative to his or her performance standards. Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained, or fired.
Another we can say that the performance appraisal is the process of assessing employee performance by way of comparing present performance with already established standards which have been already communicated to employees, subsequently providing feedback to employees about their performance level for the purpose of improving their performance as needed by the organization.
Last we can say it is a management tool which aims to improve the performance and enhance the organizational development.
2. Purpose/ Objectives of performance appraisal:
The main objective of performance appraisals is to measure and improve the performance of employees and increase their future potential and value to the company. Other objectives include providing feedback, improving communication, understanding training needs, clarifying roles and responsibilities and determining how to allocate rewards. Now we discuss more purpose of performance appraisal in below:
Providing Feedback to Subordinates: Providing feedback is the most common justiﬁcation for an organization to have a performance appraisal system. Through its performance appraisal process the individual learns exactly how well he/she did during the previous twelve months and can then use that information to improve his/her performance in the future. In this regard, performance appraisal serves another important purpose by making sure that the boss’s expectations are clearly communicated
Facilitating Promotion Decisions: Almost everyone in an organization wants to get ahead. How should the company decide who gets the brass rings? Performance appraisal makes it easier for the organization to make good decisions about making sure that the most important positions are ﬁlled by the most capable individuals.
Encouraging Performance Improvement: How can anyone improve if he doesn’t know how he’s doing right now? A good performance appraisal points out areas where individuals need to improve their performance.
Motivating Superior Performance: This is another classic reason for having a performance appraisal system. Performance appraisal helps motivate people to deliver superior performance in several ways. First, the appraisal process helps them learn just what it is that the organization considers to be ‘‘superior.’’ Second, since most people want to be seen as superior performers, a performance appraisal process provides them with a means to demonstrate that they actually are.
Counseling Poor Performers: Not everyone meets the organization’s standards. Performance appraisal forces managers to confront those whose performance is not meeting the company’s expectations.
Encouraging Coaching and Mentoring: Managers are expected to be good coaches to their team members and mentors to their clients. Performance appraisal identiﬁes the areas where coaching is necessary and encourages managers to take an active coaching role.
Setting and Measuring Goals: Goal setting has consistently been demonstrated as a management process that generates superior performance. The performance appraisal process is commonly used to make sure that every member of the organization sets and achieves effective goals.
Additional Objective/Purpose of performance appraisal: Individual Rewards
Recognition of Superior Performance
Future Goal Commitments
To help the management in exercising organizational control. To judge the gap between the actual and the desired performance.
3. Who Performs The Appraisal?
Now that we’ve learned the why, what, and how of the performance appraisal process, the next thing we need to discuss is options for the rater, or...
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3. Dessler, Gary(2003). Human Resource Management. Twelfth edition. Upper Saddle River, N.J. : Prentice Hall, ©2003.
4. Cummings, L.L., & Schwab, D.P. (1973). Performance in organizations: Determinants and appraisal. Glenview, IL: Scott, Foresman.
5. Kessler, H. W. (2003). Motivate and reward: Performance appraisal and incentive systems for business success. Great Britain: Curran Publishing Services.
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