What is Performance Appraisal – by Harshi Singhal

Performance Appraisal is the process of obtaining, analysing and recording information about the relative worth of an employee. It is the systematic evaluation of an individual with respect to his performance on the job and his potential for development in that job. The professionals measure the work done by an employee in terms of outcome and compare it with the plans. 

Need for Performance Appraisal

Performance Appraisal is needed in most of the enterprise to know about the working of the employees and to rank them on the basis of which decisions regarding salary, demotion, promotion and transfer are taken. Performance Appraisal is needed to evaluate the work done by a subordinate in order to know his strengths and weaknesses. It is in great need to avoid grievances and in disciplinary activities in the organization. Performance Appraisal is helpful to find out the training and developments needs.

Importance of Performance Appraisal

Performance Appraisal is very important for an enterprise because it gives an employee to draw personal concern from supervisors. Employees also get feedback of their work done and issues in which they lack. Employees are acquainted that their evaluation will take place on a regular basis and therefore they are accountable for their job performance. It helps in recognizing skills which requires improvement. Performance Appraisal provides an opportunity to the managers to explain the organizational goals and also contribute towards the fulfillment of individual goals.

Objectives of Performance Appraisal

The objectives are as follows:-

1. To find out the strengths and weaknesses of the subordinates so that the right person can get the right job.
2. Performance Appraisal gives an idea about how an employee is working, which helps in deciding whether he can be promoted to a higher position or not.
3. Performance Appraisal gives information about the training required by an employee for overcoming the limitations.
4. Performance Appraisal provides a feedback to the workers regarding their performance and related status.
5. Performance Appraisal helps in making decisions regarding salary.
6. Performance Appraisal puts a pressure on the employees for their better performance as they are evaluated on a regular basis.

Performance Appraisal is an investment for the company as it helps in the promotions for the deserving employees. It helps in chalking out compensation packages which includes bonus, allowances and prerequisite. It helps in framing future development programmes. Through Performance Appraisal, subordinates understand and create trust and confidence in their superiors which leads to the better results in an organization.

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