Human Resource ManagementManagement

Performance Appraisal :Meaning and its advantages.

Performance Appraisal is an imp process in an organization   so here we discuss about Performance Appraisal and its Advantages.

Performance Appraisal

Performance appraisal is a process through which organization evaluates the performance of their employees and it help to identify need of training  and different method of training. In performance appraisal the actual performance of the employees are compared with standard performance. This process organization to identify that the selected person is right or wrong in the organization by evaluating their performance.It is a process of estimating or judging the value, excellent qualities or status of a person or thing. Some of the commonly accepted definitions of Performance Appraisal are:

 According to Edwin Flippo, “Performance Appraisal is the systematic, periodic and impartial rating of an employee’s excellence, in matters pertaining to his present job and his potential for a better job.”

According to Dale Beach, “Performance Appraisal is the systematic evaluation of the individual with regards to his or her performance on the job and his potential for development.”

Performance appraisal is now a days become part of organizational life and it very difficult process to evaluate the performance of their employees.Every organization have its own procedure to evaluate its employees performance both qualitative and quantitative through which they identify that how employee perform toward organization targets.

Advantages of Performance Appraisal:

Performance appraisal helps organization to evaluate performance of employees working there. It has certain advantages which are discussed  below:

  1. Promotion: Performance appraisal helps superior to identify person who is eligible for the promotion according to their performance review.
  2. Compensation: Through performance appraisal organization chalk out employees according to their merits. Compensation packages which includes bonus, high salary rates, extra benefits, and allowance are dependent on performance appraisal. The criteria should be merit rather than seniority.
  3. Employees development: Systematic performance appraisal helps organization to identify need of training and method of training which helps in employees development. Through training employees are developed for present and future as well.
  4. Communication: Performance appraisal helps organization in effective communication between employers and employee by understanding and accepting skills of subordinates.
  5. Motivation: Performance appraisal is a process through which organization evaluates that the set targets are completed by employees effectively and efficiently. It helps in motivating employees and develop their performance in future.

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