The Importance Of Performance Appraisals

Employees, as well as managers, often wonder why organizations engage in employee performance appraisals. Successful organizations understand the importance of incorporating performance appraisals into their performance management process and strategy. Other organizations simply conduct the activity to make sure that they have a piece of paper in the employee’s file. This paper is going to focus on how performance appraisal can contribute to employee’s performance. Some of the elements here include: Strategic advantages of the performance evaluation, potential forms of bias in the evaluation system and how performance evaluations can contribute to the achievement of strategic objectives.

The performance appraisal is an evaluation of employee

These advantages may range from of personal interrelations enhancement to job promotion. One of the benefits associated with performance appraisal is that they are used to motivate employees. Performance appraisal acts as a tool for employee motivation. Through assessing employees performance, one’s efficiency can be determined. If he/she performs according to the organization’s expectations, he/she is motivated by his/her carry on. The organization could as well reward him or her

Another advantage is that , performance assessment can be used to determine compensation for the employee . Merit rating is possible through performance reviews. Appraisal attempts to give worth to employee performance. Compensation packages that include bonus , salary increments , extra benefits, allowances and pre - requirements depend on the performance assessment. The criterion is usually focused on merit rather than seniority.

Performance evaluation is also designed to foster employees’ communication strategies. Effective communication between employees and employers is essential for an organization. One important benefit of communication is that it aids maintain a warm and congenial labor relationship. Performance appraisal is directly driven towards achieving communication

Understanding the strategic objectives in performance appraisals can help one adapt performance evaluations to meet company needs. Some of the ways through which performance appraisal can help in achieving strategic objectives may be through: improving morale and staging goal setting strategies.

Goal setting is one of the most important and basic elements of strategic objectives. It is aimed at reaching the company’s ultimate objectives. Goal setting strategies can be metrics established for performance, or a percentage increase in revenue dollars. A performance evaluation should be a time for the manager and employee to discuss the professional development of the employee as well as a means to establish strategic goals that will be used to measure development for peak performance.

Morale improvement can also be a key contributor towards strategic achievements of the organization objectives. When performance appraisals are properly executed they can improve company morale and create motivation for employees. Managers identify the weak points in employees’ performance and then help to create a plan to combat the weakness. Such strategies are meant to set a tone with employees that can create a positive feeling toward the company and its