Importance of Performance Appraisal in Organization.

 

Employee appraisal is a process by which a manager assesses the employee's performance and provides feedback to the employee. Employee appraisals can be conducted every six months or annually or as often as the manager deems it necessary.

Performance evaluation is beneficial to employees and employers alike, and often evaluating employee performance helps inform management and critical business decisions regarding promotions, raises, or reducing members from teams, an effective process for solving preventable problems (Cardy L, Dobbins H.1994).

Performance evaluation is a systematic evaluation process of a particular person performed by an individual during a concentrated period and giving value to its effectiveness whilst providing feedback to the job incumbent and using the results to provide feedback to them to show where improvements are needed and why. Often this evaluation is done by the human resources management department or It may be carried out by the employee's line manager or by someone in a more senior position. of the company and the result gives more value to the employee.

The main importance of an employee appraisal is that it is one of the most effective ways to improve employee productivity. It helps recognize problems and provide feedback to employees on their weaknesses and strengths, as well as identify learning, training, and development needs. As mentioned earlier, employee appraisals should be a regular part of the appraisal (Church H,1995).

process, ideally conducted every 6 to 12 months. According to a study, 98% of businesses believe that performance management is essential for their growth; However, only 64% company have practical access to it. This is why it is also important to have a well-defined process for employee evaluations.

In addition, it is essential to remember that an appraisal is not just a one-way street – employees should also have the opportunity to provide feedback to their supervisor. This helps ensure that the evaluation process is fair and objective and gives employees the same benefits as their supervisors.

 

 What is the reason for conducting a Performance management Evaluation?

·        Removing weak links:

        The flip side of empowered and motivated employees who perform well are employees who don't match the level of work you want. Low-performing employees can significantly affect the productivity of your enterprise. Therefore providing feedback and training so that underperforming employees can meet the standard of work you expect. weak performing employees can be detrimental to the success of your company. Unfortunately, it can still happen that employees are not aligned with your business goals.

·        Recognition and motivation:

    It is a normal human tendency to work hard in any endeavor and seek approval and recognition for the effort. Employee performance appraisals provide a platform where employees are recognized for good performance. These evaluations can be measured across a variety of metrics so that employees who meet and exceed business goals are rewarded accordingly.

Recognition and rewards serve to ensure consistently high levels of work; It is also a motivation for your employees. Employees who can see how their individual contributions contribute to the success and growth of the enterprise are more likely to feel invested in their work. Consistently rewarding good performance motivates your employees not only to maintain their work standards but also to continuously improve.

·        Set new goals and resolve disputes:

    Performance appraisals are not just related to HR. They can also be a space for your employees to discuss their grievances and problems. Then you can support your employees by equipping them with the tools they need to perform at their best.

 

This two-way feedback allows you to adapt and set new goals to ensure your enterprise is performing in line with your vision for it. For example, if you find that a team in your enterprise is underperforming, you can use performance evaluation metrics to take appropriate action to provide that team with the tools they need to succeed.

·        Accurate evaluation metrics:

    Employee performance appraisal uses measurable and data-driven metrics to determine performance. It ensures that your employees are evaluated properly. Suppose performance and promotions are based on social status and hierarchy. In this case, true high-performing employees who have average performance but lack people skills may be overlooked in favor of more sociable employees.

Source.https://www.synergita.com/blog/why-is-employee-performance-evaluation-important/

Conclusion:

Performance appraisal is an essential part of running a successful enterprise. Although it is considered a difficult task, that perception has undergone a major change with the latest performance appraisal tools. Advanced technology and comprehensive performance appraisal systems can lead to sustainable growth while boosting team morale and collaboration within your enterprise. The value of employee performance appraisal cannot be underestimated if you want your organization wants to move forward with a common goal in the face of competition.

 

Personal reflation.

The performance of the employees of an organization should be constantly evaluated, and appropriate evaluation methods should be adopted by the human resource management department, thereby increasing employee satisfaction and well-being, and employees are subject to self-motivation. Positive attitudes towards the organization arise in individuals and through this. It makes it easier to reach the goals of the organization and reflects the stability of the organization.

 

References

Church H.(1995). Performance appraisal: practical tools or effective measures. Ind.Organ. Psychol. 33(2):57–64

Cardy R, Leonard B(2011), Performance Management concept, skill and exercises,1^st ed, New York.

Pulakos, D (2004), Performance Management, SHRM Foundation, 1800 Duke Street, Alexandria, VA 22314.

Charles, M (2002), Performance Management, American management association, USA.

Arvey, R. D., & Murphy, K. R. (1998). Performance evaluation in work settings Annual Review of Psychology, 49, 141-168.

Campbell P, McCloy R, Oppler H, Sager E. (1993). A theory of performance. See Schmittet al 1993, pp. 35–70