Understanding The Definition Of Performance Appraisals Commerce

Essay add: 22-11-2016, 19:41   /   Views: 172

The importance of performance appraisal as an instrument to understand how to make better use of the available technical skills and knowledge, also how to meet future challenges and achieve goals, was explained by Armstrong (2006). He also explained that performance appraisal will help improve the skills and capabilities of an individual and the organization as a whole. According to Szilagyi & Wallace(1990) it is through this process of performance appraisal that the organization gets feedback and review on the performance effectiveness of the employee. (Wiese & Buckley, 1998) employees in an organization can understand and know their level of skills and knowledge and will know how to utilize their capabilities and thus can make proper career decisions.

The method of performance appraisal empowers the employees to achieve their targets individually by improving their performance by understanding their drawbacks. Through this way it is possible that the combined performance targets of individuals will ultimately contribute to the strategic goal of the company. According to a survey by CIPD (Chartered Institute of Personnel and DevelopmentĀ ) in 2005 it was seen that almost 65% organizations did single annual performances appraisal and 27% twice every year.

Human resources is a valuable asset for every organization thus all organizations try to improve upon and maintain the existing skilled employees as it is very difficult to replace skilled labour. Thus performance appraisal in all sense helps an organization keep track of its employee skills and knowledge and take advantage of it in a proper way (Amstrong and Baron, 2004). Performance appraisal aims to improve and upgrade the performance of the employees, it is only with the help of employees who perform well can an organization its achieve strategic objectives (Michlitsch ,2000).

Performance appraisal has various purposes (Edmonstone1996) that include building rapport and proper channel of communication between the superior and subordinate though the feedback process. Understanding the area of improvement of the employee and finding ways to improve the performance along with identifying the area in which the employee needs training. Companies set standards for performance and based on the set standards performance they evaluate the performance of the employees Appraisal helps in finding out exactly based in performance who needs to be given promotion and who has to be demoted.

Characteristics of performance appraisal

According to (Caruth &Humphreys,2006) performance appraisal system is catered to the needs of a company and based on its strategic objectives and is a result of careful thinking. Though performance appraisal method varies among companies in both private and public sector, all successful

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