Need and Importance of Performance Appraisal

Need and Importance of Performance Appraisal

Performance is always measured in terms of outcome and not efforts. Performance Appraisal is needed in most of the organizations in order:

  1. To give information about the performance of employees on the job and give ranks on the basis of which decisions regarding salary fixation, demotion, promotion, transfer and confirmation are taken.
  2. To provide information about amount of achievement and behavior of subordinate in their job. This kind of information helps to evaluate the performance of the subordinate, by correcting loopholes in performances and to set new standards of work, if required.
  3. To provide information about an employee’s job-relevant strengths and & weaknesses.
  4. To provide information so as to identify shortage in employee regarding ability, awareness and find out training and developmental needs.
  5. To avoid grievances and in disciplinary activities in the organization.
  6. It is an ongoing process in every large scale organization.

Performance appraisals in an organization provide employees and managers with an opportunity to converse in the areas in which employees do extremely well and those in which employees need improvement. Performance appraisals should be conducted on a frequent basis, and they need not be directly attached to promotion opportunities only. It is important because of several reason s such as:

  1. Personal Attention: Performance appraisal evaluation, gives employee to draw personal concern from supervisor and talk about their own strengths and weaknesses.
  2. Feedback: Employees on a regular basis get feedback of their performances and issues in which they lack, which needs to be resolved on a regular basis.
  3. Career Path: It allows employees and supervisors to converse goals that must be met to grow within the company. This may encompass recognizing skills that must be acquired, areas in which improvement is required, and additional qualification that must be acquired.
  4. Employee Accountability: Employees are acquainted that their evaluation will take place on a regular basis and therefore they are accountable for their job performance.
  5. Communicate Divisional and Company Goals: It not only communicates employees’ individual goals but provides an opportunity for managers to explain organizational goals and in the manner in which employees can contribute in the achievement of those goals.
Read More Topics
Objectives of Human Resource Planning
Definition of Human Resource Planning
Role of HRM (Human Resource Management)
What is Human Resource Management (HRM)?
Controlling Management and Process of Controlling

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