Companies use performance appraisal systems as a way to develop their employees. It is used as basis for hiring, promoting, demoting, training, compensation, and transferring employees. It is an ongoing process such as daily coaching, weekly, monthly, or even yearly evaluations. This helps to improve and maintain an employee’s effectiveness and productivity. In order for the performance appraisal system to be effective managers and employees must communicate on a regular basis. Supervision is a large part of performance appraisals. Supervisors must observe how employees handle themselves on a daily basis. Supervision provides management the opportunity to help employees improve, and work at higher levels more rapidly. Well supervised employees have a better chance of excelling at their careers and ready them for more responsibilities.
.Effective appraisal systems incorporate five key elements: The five key elements of the performance appraisal are: measurement, feedback, positive reinforcement, exchange of views, and agreement. Measurement is assessing performance against agreed goals and objectives, and behavior and attitudes against espoused values. Feedback includes providing information to individuals on their performance and progress and on what is required to continue to perform well in the future, particularly in view of any changes of job roles and expectations. Positive reinforcement emphasizes what the