Benefits of performance appraisal
I/ For the appraisee:
1. Increased motivation and job satisfaction.
2. Clear understanding of what is expected and what needs to be done to meet expectations.
3. Opportunity to discuss aspirations and any guidance, support or training needed to fulfill these aspirations.
4. Improved working relationships with the superior.
5. Opportunity to overcome the weaknesses by way of counseling and guidance from the superior.
6. Increased sense of personal value as he too is involved in the appraisal process
II/ For the appraiser:
1. Opportunity to develop an overview of individual jobs.
2. Opportunity to identify strengths and weaknesses of appraisees.
3. Increased job satisfaction.
4. Opportunity to link team and individual objectives with department & organizational objectives.
5. Opportunity to clarify expectations that the manager has from teams and individuals.
6. Opportunity to re-prioritize targets.
7. Means of forming a more productive relationship with staff based on mutual trust and understanding.
8. Due to all above Increased sense of personal value
III/ For the company:
1. Improved performance throughout the organization due to:
• Increased sense of cohesiveness and loyalty.
• Managers are better equipped to use their leadership skills and to develop their staff.
• Effective communication of organization’s objectives and values.
2. Improved overview of tasks performed by each member of a group.
3. Identification of ideas for improvement.
4. Creation and maintenance of a culture of continuous improvement.
5. Communication to people that they are valued.
Purpose of performance appraisal include elements as follows:
1. Career Development
• This provides an opportunity for discussion of career objectives, and creation of a strategy designed to maximize career potential.
• To provide an opportunity for career counseling
• To help in succession planning.
• To assess training needs
• To plan for career development
• To assess and develop individual abilities
• To provide an objective basis on which to base decisions about training and promotion
• As well, feedback is encouraged in both directions: as such, employees are encouraged to prepare ratings of their supervisors.
• To provide constructive feedback to the individual regarding how their performance is seen.
• This provides a structured format for the discussion of performance issues
• on a regular basis.
• Feedback either reinforces performance strengths, or provides the opportunity to discuss resolution of performance deficiencies.
3. Administrative Uses of Performance appraisal
• Recognition of performance
• Identification of poor performers
4. Performance History
• This provides a performance history which is not dependent upon human memory, and which may be useful in the full range of personnel decisions, including compensation decision-making.
• To review past and present performance, identifying strengths and weaknesses.
5. Organizational Goals
• To clarify, for the individual, organizational expectations
• This provides an opportunity to view one’s performance in the context of broader organizational goals.
• To assess future promotion prospects and potential
• To set objectives for the next period
6. Job Standards
This provides an opportunity for clearer articulation and definition of performance expectations.
7. Documentation use of of Performance appraisal
• Documentation for HR decisions
• Helping to meet legal requirements
What is performance appraisal?
1. Definition of Performance appraisal of Wikipedia
Performance appraisal, also known as employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). Performance appraisal is a part of career development.
2. Definition of Performance appraisal of Washington University:
Any system of determining how well an individual employee has performed during a period of time, frequently used as a basis for determining merit increases.
3. Definition of personalpsychologie.com
In personnel psychology, this term is used for the evaluation of the performance of an employee or a group measuring their contributions to the goals of the organization by reference to traits, behavior and results.