Purpose of Performance Appraisal

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

2. Feedback

• 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

• Salary
• Promotion
• Retention/termination
• Recognition of performance
• Layoffs
• 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.

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