The Importance Of Performance Appraisal

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Performance appraisal is the process of evaluating an employee's performance and providing feedback. It is necessary not only for the individual to improve his or her performance on the job so that he or she can earn the rewards (e.g., money, prestige, power) for which he or she is working, but also important so that the organization can determine the degree to which its employees are contributing towards meeting strategic goals and objectives. There are many ways to judge an employee's performance on the job ranging from objective performance data to global rating scales to more detailed rating scales that represent each of the important aspects of the job. No matter the method used, however, it is vital that the rating scales be anchored…show more content…
Organizations use the data collected in performance appraisal systems for several purposes. Perhaps the most well-known of these is to establish standards and an evaluation system that can be used to form the basis of judgments as to whether to reward employees for good performance or punish them for poor performance. For example, management might set an individual productivity target of manufacturing 200 bags per day. Those who meet this standard might be given a pay raise or bonus and those who do not might not receive a monetary reward or may be put on probation. Performance appraisal data are also used to provide the criterion information that is used to select new candidates for the job. For example, the results of a job analysis might tell management what tasks a production worker needs to perform on the job. This information is used in conjunction with performance appraisal data that provide information regarding the standards to which employees must be able to perform these tasks in order to develop criteria to be used in hiring new employees for the…show more content…
In most cases, both the employees and management would like to see improved performance on the job. From the employees' perspective, improved performance can be the key to raises, bonuses, perks, and promotions. Such things can help them meet their needs on the job or in other areas of their lives (e.g., a bigger house, recognition, status). Similarly, management would like to see improved performance because it helps to improve the effectiveness and efficiency of the organization, improves the return on investment for hiring and training, and helps the organization reach its strategic goals and become a high performing organization. 2.3 Information required in Performance Appraisal Before an objective performance appraisal system can be developed, one must first perform a job analysis to determine what tasks are actually performed on the job, the standards to which these tasks need to be performed, and the knowledge, skills, abilities, and other characteristics necessary in order to adequately perform these tasks. Job analysis is the systematic, empirical process of determining the exact nature of a job, including: • The tasks and duties to be

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