Performance evaluations are “a process and a system for determining the suitability of employees for other jobs, particularly of higher responsibility in an organization,” according to one definition of Performance Appraisals.
Uses / Purposes of Performance Appraisals
- Performance Appraisal is a useful tool for both employees and employers. Employees should know how efficiently they have done their duties and what improvement is required for their performance. On the other hand, employers can assess areas of strength and weakness of their employees.
- Most business units decide their action regarding increments, promotions, and rewards of their employees based on performance appraisal.
- Performance appraisal identifies the strength and weaknesses of the employees. Weak Performance may be improved through proper training.
- Performance appraisal helps the management to determine the deficiencies, if any, in respect of their recruitment and selection process.
- It helps the management to confirm an employee at the end of the probation period.
- It acts as a tool for the development of manpower in an organization.
- It leads to an improvement in managerial leadership by means of a periodic and effective appraisal.
- It guides the manager in assessing future assignments.
- Periodic appraisal of the performance of subordinates may help the departmental managers to be alert on their duties of supervision and control.