The Importance Of Performance Appraisal

Performance appraisal is a process that assesses job performance of an individual employee systematically and periodically. It also assesses productivity in relation to certain pre-established criteria and organizational objectives. Performance appraisal is the process set by an organisation to ensure, all employees are aware of the level of performance expected of them in that role, as well as any individual objectives they will need to achieve, to achieve overall organisational objectives [1].

The organisations establish a set of activities to evaluate employee performance regularly and systematically and ensure its alignment to business matrix. There are many types of performance appraisal methods used in organisations such as trait based

An effective appraisal may not only eliminate behavior and work-quality problems, but it also motivates an employee to contribute more to the organization. Performance appraisal can benefit organization effectiveness. There are various benefits of performance appraisal for example effective communication between the employees and employer. In any organization communication is taken as important part of employee motivation. So communication between management and employee function as guide on job performance. At the same time behavior or trust factors can also distract the employees from their regular work. Therefore a well structured and utilized performance appraisal can reduce these distraction factors and encourage trust in organization. Goal setting of employees is also the prominent part of performance appraisal cycle. It is efficient to match individual employee goals and performance with organizational goals and performance appraisal provide such platform for discussion in the collaboration of these individual and organization goals. Enhancing skill set or training always plays crucial roles in performance appraisal system. An effective training and development plan for an employee can help organization to achieve their strategic initiative.

He finds many causes by conducting small survey on managers experiencing formal management appraisal system most of the people dissatisfied by the ineffective rating system. The rating criteria must be of the basis of performance standard and behavior outcome. There must be two way communication between manager and superior and a bonding of mutual trust and respect in an Organization. In many cases superior have lack of knowledge of the processes. He knowledge of the processes; he must be the actual contributor of the result achieved by the organization. To increase the effectiveness of the formal review process managers stated that ongoing performance feedback throughout the year makes effective managerial performance. However managerial performance is almost negative when the second guessing review shows the negative impact. To overcome with the situation manager should clearly defined the standard of performance and maintain a healthy and viable relationship in the organization. He conducts a performance appraisal in a professional and consistent manner. He tries a linkage between the actual performance and performance rating standard. He follows the management development plan and discusses the formal review process in the