Purpose of Performance Appraisal

To get the best out of employees, organizations should create an environment where employees’ efforts are recognized. It is also necessary to monitor employees’ job performance to ensure that it is line with the organization’s strategic vision. This requires the company or business to assess employees’ performance regularly.

Performance appraisal is an important tool of HR management, and is used for a variety of purposes including:

  • To appraise the quality of performance of different employees. It includes knowledge of the work, ability to do the work efficiently, spirit of coordination, dependability, punctuality, enthusiasm, self-confidence, leadership qualities etc.
  • The appraisal procedure is standardized so that the management may rate all employees on the same qualities by the same method of measurement.
  • Performance appraisal is also useful in training especially deciding the type and nature of training programmes for employees.
  • It helps in placement of employees properly and also finding the ‘misfit’ who may be transferred to the right place.
  • Performance appraisal also forms an unbiased and systematic basis for increase in wages of employees as well as identifying employees who may be considered for promotion.

To the employee, a properly designed performance appraisal system can:

  • Help each employee understand more about their role and become clear about their functions
  • Be instrumental in helping employees to better understand their strengths and weaknesses with respect to their role and functions in the organization
  • Increase mutuality between employees and their supervisors so that every employee feels happy to work with their supervisor and thereby contributes their maximum to the organization
  • Act as a mechanism for increasing communication between employees and their supervisors
  • Help employees internalize the culture, norms and values of the organization, thus developing an identity and commitment throughout the organization;
  • Help prepare employees for higher responsibilities in the future by continuously reinforcing the development of the behaviour and qualities required for higher-level positions in the organization
  • Be instrumental in creating a positive and healthy climate in the organization that drives employees to give their best while enjoying doing so; and
  • Assist in a variety of personnel decisions by periodically generating data regarding each employee.

Leave a Reply

Your email address will not be published. Required fields are marked *