Performance appraisal is a process used by organizations to assess the performance level of their employees and provide them with feedback. This process can be used for both administrative and developmental purposes. Although PA is an important tool for managing managers and employees, workers are rarely satisfied with it. Therefore, clearly defining the purposes of the PA and addressing the employees’ reactions are essential to the success of the appraisal. Primary goals for performance appraisal are: (1) to provide adequate feedback to each person on his or her performance; (2) to serve as a basis for modifying or changing behavior for dynamic working habits; and (3) to provide data to managers in which they may judge future job assignments and compensation.
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Why use Performance Appraisal?
Performance appraisals are integral to the growth of a company and its employees. It is a very important part of HR management. It helps the manager identify whether the employee is a liability or productive.
This can be a productive platform for the employee to express his or her work-related issues and sort them out, and for the HR or supervisor to motivate the employee to contribute more. Some of the features of performance appraisal
Employee satisfaction and motivation
A performance appraisal is a periodic meeting where the employee is recognized for their good work. Even if the employee has not done a good job, it is important to realize that the organization is interested in the employee’s individual performance and their growth in the company.
This motivates the employee to work with dedication, which in turn benefits the company. A regular appraisal program can have a deep impact on all levels of employee satisfaction and motivation.
Finding out the need for training and development
During an appraisal meeting, the employer can suggest areas where the employee needs improvement. The employee can look at the report, agree with the employer, and then work out a plan for training and development. The training will help the employee perform better for future growth.
Analyzing appraisal data for better recruitment
Appraisal data helps in monitoring the success of a company’s process of recruitment. For example, how well are the employees who were hired in the past one or two years performing, how is the attrition rate, and so on? Based on it, the HR manager can strategize potential hiring.
Improving communication between management and employees
Most of the time, the supervisor or manager won’t have time to pay proper attention to the new hire. Performance appraisals will help to break that ice, which is good for the supervisor or manager as well as the employee because better communication leads to better productivity.
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The concept of performance appraisal is central to effective management and to evaluating and documenting how well an employee is carrying out his or her job. It is a division of a company’s performance management system.
The appraisal process gives employees work feedback, helps managers make decisions about pay increases and bonuses, and identifies areas that need improvement.