Learn the Importance of using a performance appraisal in any organization

The Importance of a performance appraisal in organizations

Performance appraisals help the organizations to promote personal success for each employee. Every employee needs the reinforcement that makes them realize the management values them. The performance evaluations allow the management to establish guidelines for every employee to follow that in return help tracks the worker's strength and weaknesses. The performance appraisals offer an atmosphere of excellence as every employee is made accountable for the positions they hold. They also create an open platform where the employees can discuss both challenges and success stories with their supervisors. It is a great pathway to help the weak employees grow robust and better in what they do.

Importance of using a performance appraisal

  • Performance feedback - Employees who genuinely are out to give their level best at work are interested in knowing how they are doing presently and how they can become better in future. This information helps them make progress, get promotions and higher pay. Proper performance feedback improves the employee's future performance through encouragement and motivation.
  • Training and development decisions - performance appraisals are used to ascertain whether the employees should undertake additional training and development to make them better equipped. Some deficiency in performance may be brought about by inadequate knowledge and skills that can be added to the employee. Training can also be accorded for a higher position that the employee is about to take.
  • Improving communication - employee performance appraisals are critical in that they create a clear pathway of communication between the employer and the employee. By freely speaking about the job performance and the issues affecting it, the employee and the manager can always find solutions to the underlying problems. 
  • Motivation and satisfaction - The performance appraisal is known to have a profound effect on motivation and satisfaction to the employees. Employees are recognized for their work efforts making them feel motivated through the social recognition. Performance appraisal communicates to the employee that the company knows him/her and their performance. This simple yet profound act brings a positive influence on the employee's sense of worth and belonging.
  • Recruitment and induction - The performance evaluation data is used to monitor the success of a company through its recruitment and selection processes. The better your employees are performing, the more the company grows. Appraisal information mostly helps the company to monitor the effectiveness of any change and its easy to assess whether the general quality of the workforce is improving, steady or declining.




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