Importance of Performance Appraisal
The primary advantages or importance of performance appraisal are :-
1. Performance Feedback
Most employees are really interested inwards knowing how good they are doing at acquaint in addition to how they tin create ameliorate inwards a future. They desire this information to improve their functioning inwards society to larn promotions in addition to merit pay. Proper functioning feedback tin improve the employee's hereafter performance. It also gives him satisfaction in addition to motivation.
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2. Employee Training in addition to Development Decisions
Performance Appraisal information is used to notice out whether an employee requires additional preparation in addition to development. Deficiencies inwards functioning may endure due to inadequate noesis or skills. For e.g. H5N1 professor may improve his efficiency past times attention workshops or seminars close his subject. Performance appraisal helps a managing director to notice out whether he needs additional preparation for improving his electrical flow chore performance. Similarly, if the functioning appraisal results exhibit that he tin perform good inwards a higher position, in addition to then he is given preparation for the higher degree position.
3. Validation of Selection Process
Performance appraisal is a agency of validating both internal (promotions in addition to transfers) in addition to external (hiring novel employees from outside) sources. Organisations pass a lot of fourth dimension in addition to coin for recruiting in addition to selecting employees. Various tools used inwards the choice procedure are application blanks, interviews, psychological tests, etc. These tools are used to predict (guess) the candidate's functioning on the job. H5N1 proper functioning appraisal finds out the validity of the diverse choice tools in addition to thence the society tin follow suitable steps for selecting employees inwards future.
4. Promotions
Performance appraisal is a way of finding out which employee should endure given a promotion. Past appraisals, together alongside other background data, volition enable management to choose proper persons for promotion.
5. Transfers
Performance appraisal is also useful for taking transfer decisions. Transfers oftentimes involve changes inwards chore responsibilities, in addition to it is of import to notice out the employees who tin get got these responsibilities. Such identification of employees who tin endure transferred is possible through the functioning appraisal.
6. Layoff Decisions
Performance appraisal is a skilful way of taking layoff decisions. Employees may endure asked to lay off, if the demand arises. The weakest performers are the outset to endure seat off. If at that topographic point is no functioning appraisal, in addition to then at that topographic point are chances that the best men inwards the division may endure seat off.
7. Compensation Decisions
Performance appraisal tin endure used to compensate the employees past times increasing their pay in addition to other incentives. This is truer inwards the example of managerial jobs in addition to also inwards the example of employees inwards non-unionized organisations. The ameliorate performances are rewarded alongside merit pay.
8. Human Resource Planning (HRP)
The appraisal procedure helps inwards human resources planning (HRP). Accurate in addition to electrical flow appraisal information regarding surely employees helps the management inwards talking decisions for hereafter employment. Without the noesis of who is capable of beingness promoted, demoted, transferred, seat off or terminated, management cannot brand work plans for the future.
9. Career Development
Performance appraisal also enables managers to coach in addition to counsel employees inwards their career development.
