Use of Performance appraisal

Question

What are the uses of Performance appraisal?

Answer 1

It should be used for improving the employees and their performances:

1. Help in Deciding Promotion: It is in the best interest of the organization to promote the employees to the places where they can most efficiently use their abilities.

2. Help in Personnel Actions: Some of the personnel actions such as demotions, lay-offs, discharges and transfers etc. can be justified only if they are on the basis of performance appraisal.

3. Help in Wage and Salary Administration:  The raise given in wage to some employees based on their good work may be justified by the performance appraisal outcomes.

4. Help in Training and Development:  A suitable system of performance assessment assists the management in making training and development programs and in recognizing the areas of ability or knowledge in which many employees are not at par with the job necessities.

5. Aid to Personnel Research: Performance appraisal assists in performing research in the field of employee’s management.

6. Help in Self Evaluation: Every employee is concerned to know about his performance on the job and his capabilities for higher jobs so as to take himself to the level of that position.

7. Help in Creating Healthy Competition:  Performance appraisal takes out the shortage and limitation of the workers.