Objectives of Performance Appraisal

Objectives of Performance Appraisal

Performance appraisal in any organization is undertaken to meet certain objectives which may be in the form of salary increase, promotion, recognizing training and development needs, providing feedback to employees and putting stress on employees for better performance.

An employee in an organization may think that performance appraisal is basically used by the organization to blame employees and to take corrective actions. An employee may feel that performance appraisal is introduced in an organization for punishment in such a case well thought out performance appraisal may results into failure.

If the objectives set in a more positive, problems may arise as they may not all be achievable and they may cause conflict.

For Example, an employee who is likely to be appraised will never discloses his loopholes as it may affect his appraisal. Thus the objective of performance appraisal should e clear and specific. Thus including objectives into the appraisal system may draw attention to areas for improvement, new directions and opportunities.

  1. Salary Increase: Performance appraisal plays an important role in making decision about increase in salary. Increase in salary of an employee depends on how he is performing his job. Evaluation of an employee takes place on a continuous basis which may be formally or informally. In a large as well as in small organizations performance appraisal takes place but it may be in a formal or informal way. It shows how well an employee is performing and to what extent a hike in salary would take place in comparison to his performance.
  2. Promotion: Performance appraisals gives an idea about how an employee is work­ing in his present job and what his strong and weak points are. In comparison to his strength and weaknesses it is decided whether he can be promoted to the next higher position or not. If necessary what additional training is required. Similarly it could be used for demotion, discharge of an employee and transfer.
  3. Training and Development: Performance appraisal gives an idea about strengths and weaknesses of an employee on his present job. It gives an idea about the training required by an employee for overcoming the limitations that an employee is having for better performance in future.
  4. Feedback: Performance appraisal gives an idea to each employee where they are, how they are working, and how are they contributing towards achievement of organizational objectives. Feed works in two ways. First, the person gets view about his performance and he may try to conquer his weaknesses which may lead to better performance. Second, the person gets satisfied after he relates his work with organizational objectives. It gives him an idea that he is doing a meaning full  work and can also contribute in a better way.
  5. Pressure on Employees: Performance appraisal puts a sort of stress on employees for better performance. If the employees are aware that they are been appraised in comparison to their performance and they will have positive and acceptable behaviour in this respect.
Read More Topics
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Principles of Wage and Salary Administration
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