WHY PERFORMANCE APPRAISAL

I have chosen Performance Appraisal as my topic because PerformanceAppraisal is

viewed as a beneficial process within the context of an effectivesystem of personnel
management. It is a very effective tool to improveperformance and productivity and
for developing employees. It is accepted as anormal management responsibility to
review the performance of all employees and for all managers to discuss performance
with their subordinates on a regular basis. It helps individuals to do better, raises selfesteem and motivation. Above all it strengthens the management/subordinate
relationship and fosterscommitment. Performance evaluation is not a process to be
avoided; rather itshould be implemented in all organizations and promoted as a key
managementactivity. The benefits to be realized from a proper evaluation system far
outweighthe time and effort required to develop, implement and maintain the process.

CONTRIBUTION OF PERFORMANCE APPRAISAL TO THEORGANISATION & EMPLOYEES

Performance appraisal is significant for every organisation and provides severalvaluable
benefits to both employees and the organisation. It helps in strategicdevelopment of the
organisation and helps it gain competitive advantage.

Performance appraisal improves the performance of the organisation. It lets theboss and
the subordinate develop a plan for correcting any deficiency thatthe appraisals have
uncovered. It also helps in reinforcing the things thesubordinate does correctly.

Performance appraisal system helps to evolve strategic training programs toequip the
employees with necessary skills for job fulfilment. The evaluationmay provide ideas for
refining established practices or instituting new ones

Appraisal of performance improves the performance of the employees, by meansof the

feedback. Although not all employees have the same amount of desire to improve,
generally all of them want to know how well they areperforming.

Performance appraisal can have a massive effect on the level of employeemotivation and
satisfaction. . Motivation and the human basic needs gohand-in-hand. It is thus very
important for the organizations perspective tomotivate their employees
.
OBJECTIVE AND SCOPE OF PERFORMANCE APPRAISAL
Objective:The main objective of performance appraisals is to measure and improve
theperformance of employees and increase their future potential and value to
thecompany. Other objectives include providing feedback, improvingcommunication,
understanding training needs, clarifying roles andresponsibilities and determining how
to allocate rewards.The scope of performance appraisal should include the following:

Provide employees with a better understanding of their role and responsibilities

Increase confidence through recognizing strengths while identifying trainingneeds to

improve weaknesses

Improve working relationships and communication between supervisors

andsubordinates

Increase commitment to organizational goals

Develop employees into future supervisors;

assist in personnel decisions such as promotions or allocating rewards

Allow time for self-reflection, self-appraisal and personal goal setting.