Need and importance of Performance Appraisal

Question

What are the need and importance of Performance Appraisal?

Answer 1

Performance is always measured in terms of outcome and not efforts. Performance Appraisal is needed in most of the organizations in order:

(1) To give information about the performance of employees on the job and give ranks on the basis of which decisions regarding salary fixation, demotion, promotion, transfer and confirmation are taken.

(2) To provide information about amount of achievement and behaviour of subordinate in their job. This kind of information helps to evaluate the performance of the subordinate, by correcting loopholes in performances and to set new standards of work, if required.

(3) To provide information about an employee’s job-relevant strengths and & weaknesses.

(4) To provide information so as to identify shortage in employee regarding ability, awareness and find out training and developmental needs.