Growing body of literature emphasises the compensation and reward aspects of performance management. In this regards, inefficient workers can be dismissed or demoted in case. Performance appraisal means evaluating the work of others. It is essential for the employers to know what performance and achievements have been made by their employees. Performance Appraisal: Objectives, Methods, an other Details! Performance appraisal is the systematic evaluation of employees with respect to their performance on their job and their potential for development. It is an analysis of a staff’s recent performance, advantages and disadvantages, and suitability for training or promotion in the future. Determining Compensation Changes. b. Supporting Manpower Planning. But how can pay decisions be made if there is no measure of performance? The performance appraisal is one of the most important parts of HRM system. Objective performance criteria should be based on some form of observable behavior related to the duties of the job. A performance appraisal serves all of the following purposes except which of the following? Providing Legal Defensibility for Personnel Decisions. The major purpose of performance appraisal is to evaluate how well employees have conducted their duty. When employees know that they are heading in right direction, it develops a sense of satisfaction in them. This way, performance appraisal works as a bridge of communication between the employers and employees. The complete process of performance appraisal includes continuous feedback from the supervisors. It is a process in which a manager identifies the desired objectives to be achieved and gives each individual a major areas of responsibility in terms of results expected from him/her and use these measures as a guide to access the contribution of each individual employee.It is less time consuming and cost effective compared to other performance appraisal methods. Almost every organization believes in pay for performance. All employees may not be an all-rounder. It involves frequent reviews and hence often appears similar to performance management. Performance appraisal serves over a dozen different organizational purposes: ... Providing feedback is the most common justification for an organization to have a performance appraisal system. Validating Hiring Decisions. Facilitating Layoff or Downsizing Decisions. Managers perform evaluations to benefit both employees and the employer. Companies need to determine who and where their most talented members are. Performance appraisal also serves as an inspiration tool. Performance appraisal forces managers to confront those whose performance is not meeting the company's expectations. A performance appraisal is a systematic, general and periodic process that assesses an individual employee's job performance and productivity in relation to certain pre-established criteria and organizational objectives. But when economic realities force an organization to downsize, performance appraisal helps make sure that the most talented individuals are retained and that only the organization's marginal performers are cut loose. An effective performance appraisal system generally serves which purposes? Performance appraisal works as a mirror to employees and it clearly shows what they are professionally and where they stand. DEFINITIONS. Performance appraisal helps in identifying such weak points. Almost any personnel decisiontermination, denial of a promotion, transfer to another departmentcan be subjected to legal scrutiny. Companies provide career development opportunities to such employees and pave their way to a successful and stable career.eval(ez_write_tag([[336,280],'businesstopia_net-box-4','ezslot_8',138,'0','0'])); Performance appraisal helps in charting progress of employees. Managers are expected to be good coaches to their team members and mentors to their protégés. Learning Objectives O By the end of this interactive session, staff nurses will be able to: O Define performance appraisal. The first and most obvious purpose of employee appraisals is to measure employees’ performance. Such actions may be counseling or warning the poor performers to improve performance and to prevent the occurrence of undesirable results. Performance Appraisal Process: The Steps. Basic elements of effective performance appraisal systems An effective performance appraisal system that accomplishes an organization's goals should have essentially four elements: 1. First, the appraisal process helps them learn just what it is that the organization considers to be "superior." Goals for the appraisal process. It is because #1 they want to enjoy the perk of being an excellent employee or #2 they fear negative reactions from the supervisors. The increment in skills and knowledge develop an overall personality, attitude and behavior of the employees. Show EXHIBIT 4 and discuss how a performance system can be useful. This purpose of performance appraisal system of promotion is actually that it helps employers to see which employee would be more beneficial for them in either business or growth terms of the company. We have touched on this with the concept of an employee evaluating personal performance before the formal session. This is another classic reason for having a performance appraisal system. A properly carried out performance appraisal is a tool to determine what necessary steps are to be taken in order to help the employees in improving their performance. 20 Effective or Successful Job Search Strategies & Techniques. How should the company decide who gets the brass rings? It helps to identify employee's job related behavior and outcomes. A merit rating, performance appraisal, employee appraisal, performance review, or (career) development discussion is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) by the superior manager or supervisor.