Importance & benefits of performance appraisals
Importance of performance appraisal is as follows, (Tapomoy Deb, 2008)
- It helps management in making various HR decisions such as recruitment, promotion,Transfer, demotion, lay off, termination & succession planning.
- It facilitates in identification of training and development needs of the employee.
- It is a unified system and thus avoids the errors of nepotism, self-interest and discrimination.
- It makes known the performance standing to the employee himself and provides opportunity for improvement through constructive criticism and guidance for their development.
- It improves communication between managers and employee.
- It helps in improving quality of supervision by highlighting inefficiencies in supervision.
- It helps in evaluating the effectiveness of HR policies, plans, programmes on recruitment, selection, induction, placement and compensation.
In addition to that, benefits derived to the employees & organization perspective from performance appraisal could illustrate as follows, (Balu L, Cheeran CS, Joshi MM, 2017)
Benefits derived
to the employees from performance appraisal practices.
- Increase in Salary : The performance appraisal process offers merit to the performance of employees and also an increase in salary.
- Enhancement in employee’s progress: It helps to pore over effectiveness and flaws of employees so that new everyday jobs can be well planned and assigned to capable employees.
- A tool of Motivation: It serves as an inspiration tool.
- Spot Strength and Weakness: The HR manager of the organization can spot the strength and weakness of the employees thus helping the employees work on their weakness and make it their strength.
- Providing Feedback to employees: The main aim of HR person is that he or she should give regular feedback to the employees about how they can perform better and what are the major targets and how to achieve them.
Benefits derived to the organization from performance appraisal practices.
- Increase in efficiency: improvement in the methods of performance review and appraisal helps the company to be more effective and helps to achieve the organizational goals faster.
- Helps to understand an employees’
concern:
Continuous performance reviews helps to have a frequent discussion with the
employee and his manager. Then, needful can be done there by adhering to the
requirements of the employee which leads to employee satisfaction.
- Helps to promote team work : Team can work in a better manner without much of difference of opinions and trust issues.(6-reasons-fortune500-companies-replacing-traditional-performance-review, 2017)
- Helps maintain a transparent system: This will make the performance managers take their work more seriously and will increase their accountability and responsibility.
Further, Katavich has been carried out a research among the sample consisted of N=118 New Zealand professionals working in either the retail or finance industry. After controlling for organization (one or two), organizational tenure, organizational level (management or staff) and work status (full time or part time) it was found that performance appraisal satisfaction accounted for variance in both effective commitment & intention to leave. (Kattavich KM, 2013)
However, no significant correlation was found with the work performance. As there was no significant association between performance appraisal satisfaction and work performance, no moderate was found.
List of references
- Balu L, Cheeran CS, Joshi MM 2017, “Best practices in Performance Appraisal”,6th International Conference on Managing Human Resources at the Workplace, December 8-9, pp 6-7.
- Deb, T 2008, Performance appraisal & Management, Concepts, antecedents and implications, New Delhi.
- Kattavich KM 2013, “The Importance of Employee Satisfaction with Performance Appraisal Systems” , New Zealand, pp.2.
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Performance appraisal is the strength of performance management, which in turn affects the organizational performance. It helps to identify and overcome the problems faced by the employees on work (Mackey and Johnson, 2000, page.3).
ReplyDeleteAgreed for your supportive comment.
ReplyDeleteFurther, global economy has forced organizations in public sector to emphasize on transparency, accountability and efficiency to enhance productivity. (Bouckaert & Halligan, 2006; O’Toole & Meier, 2015).
One key factor to staff performance is organization global achievement and for employees to be considered successful, they are expected to achieve their performance goals. (Campbell, 1990).
According to Armstrong (2009) managing performance is the means of getting better results within an agreed certain time period while upholding the organization standards and competency. McDougall and Levesque (1999) elucidates that poor or ineffective, service delivery will result to loss of confidence by the customers who becomes dissatisfied and end up seeking for alternatives.
Performance appraisal is widespread and it is potentially a crucial instrument for organizations to make the most of their employees. (Armstrong and Baron, 2005)
Performance appraisals are used in almost all organizations. There are various instruments and number of goals that performance appraisals focus to determine employees performance and potential of development. The performance appraisal process requires an organization to measure and evaluate individually the employee’s behavior and accomplishments over a specific period of time (De Vries et al.1981).
ReplyDeleteAgreed for your comments & it is noteworthy to highlight that the process of performance appraisal is a continuous ongoing activity which should happen on a regular basis. It is a process which is carried for the management and also to motivate the employees to do the required set of managerial work in the organization. There is a requirement of performance appraisal and management for the company but at the same time, it also has the requirement for money to invest into the methods of appraisal and training development programs. (Mishra, 2013)
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