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Appraisal can be described as the process of reviewing employee performance, documenting the review, and delivering it to the employee in the form of feed back.It is one of the phases of the performance management cycle. appraisals, sometimes called performance reviews, are one of a number of performance management tools that aim to ensure employees” performance contributes to business objectives, and should be used as part of a holistic approach to managing performance. The value of annual performance appraisals has increasingly been challenged in recent years in favour of more regular“performance conversations”.
Superiors may use performance appraisal information to manage the performance of their employees. Appraisal data will reveal the employees weaknesses and the managers can easily identify them while setting standards and advise the employee accordingly.Besides the managers can also programme incentives in such a manner that the employee is motivated and his performance is enhanced eg.pay for performance, incentives, bonus, rewards, commissions etc
The information obtained from appraisals is also used for internal staffing or promoting the individual. Most organisations do believe in the policy of promotions from within.
Most organisations use the data obtained from performance appraisal to determine employees needs for training or development. Most companies like microsoft, IBM, Honeywell etc use the data for training their employees.
Information obtained from the appraisal is usually conveyed to the employees in the form of feedback and counselling is offered to the employees about their performance levels.This process is usually beneficial to the employees in identifying their performance weaknesses and modifying them.
It is said that performance appraisal is an investment for the company which can be justified by following advantages:
All the above factors ensure effective communication.
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