BENEFITS/USES OF PERFORMANCE APPRAISAL?
Meaning: - Performance appraisal is a process of evaluating work
performance of employees. The purpose of appraisal is to individual and
organizational effectiveness.
Definition: - “Performance appraisal is the systematic
description of an employee’s job relevant strengths and weakness"
Defined be …………… (Wayne
Cascio)
BENEFITS/USES OF PERFORMANCE APPRAISAL
1.
Performance Feedback: - Performance appraisal provides performance
feedback to the employees. Employees can come to know about their job related
strength and weaknesses. Such feedback enables the employees to correct their
weaknesses and improve on their strength.
2.
Training and Development: - Performance appraisal information may be used to
determine whether an employee or a group of employees requires additional
training and development. Deficiencies in performance may be attributable to
inadequate knowledge or skills. Accordingly, the organization may decide to
provide additional training to the employees.
3.
Motivation:
- Performance appraisal facilitates motivation of the employees. The high
performing employees are given higher ratings in Performance appraisal. They
may be rewarded with monetary and non-monetary incentives.
4.
Promotion:
- Performance appraisal gives management a means of identifying employees for
promotion. Past appraisal together with other background data enables
management to select persons for promotion more intelligently.
5.
Transfers:
- Performance appraisal is useful in effecting transfer decisions of employees.
Effective transfer of employees is possible through the reports of Performance
appraisal.
6.
Human Resource Planning: - The appraisal process aids in human resource
planning. Accurate appraisal data regarding employees may provide management
with important information to base decisions for future employment. Without the
knowledge of who is capable of being promoted, transferred and terminated; management
is at a severe disadvantage with respect to framing various future employment
plans.
7.
Management-Labour Relations: - Performance appraisal helps to maintain good
labour relations between the management and the labour. This is because
Performance appraisal creates an healthy atmosphere in the organization. The
effective employees are motivated to perform more effectively and the
ineffective employees are encouraged to do away with their weakness or
limitations.
8.
Documentary Evidence: - Performance appraisal reports can be used as
important documentary evidence in case of disciplinary action taken against
some ineffective employees. This is especially true in case of unionized
organization.
9.
Effective Communication: - Appraisal interviews and reports can be
effective means of communication to the employee and can result in improved
performance.
10.
Career Development: - Performance appraisal enables managers to coach,
counsel and assists employees in their career development.
