Performance appraisals are initiated and executed in organizations to measure and improve employees’ performance. Effective appraisal processes should drive performance and help employees identify new professional growth opportunities. Performance appraisal is necessary as it helps managers to establish remuneration guidelines and identify strengths and weaknesses of staff, and should focus on an employee’s progress report.
Conducting performance appraisal in the organization is necessary because it helps to establish remuneration and compensation guidelines. Per Ray & Singh (2016), compensation is often tied to performance in modern organizations. The employees that perform well receive higher annual salaries and bonuses compared to those that perform poorly. Performance appraisal undertaking offers an avenue in which managers examine how an employee has achieved set goals and targets. The information relating to the achievement of assigned goals is used to reward employees accordingly.
Performance appraisal is needed to track the strengths and weaknesses of employees before assigning them to different teams within an organization. Rawat & Basergekar (2016) opine that different workers bring varied work experience and capabilities to the organization. As such, identifying the ideal candidate for each team in the organization is a crucial part of management. The precise way to select workers for diverse teams is by examining their strengths and weaknesses. Regular performance appraisal generates valuable information relating to behaviors and capabilities of each staff subsequently utilized to assign them duties.
Employee performance appraisal should be conducted in a manner that focuses on workers’ progress reports. Ray & Singh (2016) report that performance appraisal often fails in some organizations because it is perceived as a mere rigid process undertaken quarterly or annually. Effective performance appraisal examines how employees have grown in a particular role over time. Consequently, the appraisals should evaluate the milestones that the growth is likely to achieve for the organization and staff. By focusing on employee progress, employers are able to provide practical insights on how employees can improve their performance.
Performance appraisal is a practical tool that managers utilize to examine an employee’s achievement of set targets. In essence, a performance appraisal should focus on progress employees have made in the past, even as managers use the tool to establish remuneration guidelines, and identify employees’ capabilities.
Rawat, P., & Basergekar, P. (2016). Managing workplace diversity: Performance of minority employees. Indian Journal of Industrial Relations, 51(3), 488-501.
Ray, P., & Singh, M. (2016). HR transformation for the new generation in the work force. Indian Journal of Industrial Relations, 52(2), 336-349.