Why is There a Need for Performance Appraisal in an Organization?
This study aimed to assess performance appraisal and its effect on the performance of employees in an organization. Performance appraisal is an important aspect of any organization because it aids in tracking employee’s contributions toward the growth and development of an organization. It helps to identify whether an organization’s goals are being achieved. It helps an organization to identify its strengths, weaknesses, and opportunities for future enhancements. Performance appraisal acts as a basis for an organization’s future planning and development.
Performance appraisal is a systematic process of evaluating the work performance, behavior, and potential of employees in an organization. It involves setting clear and specific goals, measuring the progress and outcomes of the work, providing feedback and recognition, and identifying areas for improvement and development.
Performance appraisal is a valuable tool for managers and employees. It allows managers to evaluate the performance of their staff, reward their achievements, identify their development needs, and plan their career paths. It also allows employees to receive feedback on their work, recognize their areas of improvement, align their goals with the organization's vision, and increase their satisfaction and commitment.
Performance appraisal is a process that aims to enhance employee motivation, productivity, and quality of work, as well as to determine training and development needs, recognize high performers, and support career planning. Performance appraisal can be done using various methods, such as rating scales, behavioral observation scales, critical incidents, management by objectives, 360-degree feedback, etc. Each method has its pros and cons, and the selection of the most suitable method depends on the nature of the job, the objective of the appraisal, and the organizational culture.
Why is There a Need for Performance Appraisal in an Organization? a Case Study
Key Learning Outcomes
- Understand the relative importance of performance appraisal in an organization.
- Understand the effectiveness of performance appraisal systems in different organizations.
- Apply performance appraisal to organizations
An organization’s success depends entirely on the quality of its workforce. In an organization, employees become a very significant factor and they are at times referred to as the heart of the company, this is so because it is impossible for an organization to achieve its goals and objectives without them. However, it is also important to note that employees also need inducements or things that motivate them to work and aim at achieving the best interests of the company. This certainly remained suggestive of the more strategic approach to Human Resource Management policies which aimed at connecting the aims of the organization to the performance of the individuals. Performance management ensures that employees achieve the goals and objectives that align with the organization’s long-term vision and strategy.
An organization’s basic aims and objectives turn out to be an important part of the process of performance management and it is communicated through the performance appraisal process. Baron et al (2005) defined performance appraisal as a more limited approach that involves managers making annual assessments and evaluating the performance of their employees. Armstrong (2006) described the role of the performance appraisal as a tool for looking forward to what needs to be done by people in the organization in order to achieve the purpose of the job.
One of the key practices in any organization is performance appraisal, which is a systematic assessment of how well an employee is performing their job and how much they are contributing to the company's growth and development. Performance appraisal helps managers identify the strengths and weaknesses of their employees, provide feedback and guidance, and reward or correct their behavior accordingly.
Employee’s performance is evaluated based on how well they achieved the goals that were agreed upon with their manager at the beginning of the year. The manager and the employee have regular meetings throughout the year to monitor the progress and provide feedback. At the end of the year, the manager gives an overall rating that reflects the employee's performance.
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