PERFORMANCE APPRAISAL

In organization, each employees has to complete assigned work irresponsible manner by using delegated authority. The performance of each employees can be measured in terms of efficiency and effectiveness. To make employees permanent, to provide reward, evaluation of their performance is important. To reduce turnover ratio,absenteeism, late coming, motivation is important. Motivation of employees is possible by performance evaluation and rewarding them.This helps to identify strengths and weakness of each employees. This process of evaluating performance is called performance appraisal.

Performance appraisal provide feedback to the employees. It helps them to know at what position they stand, what is their real interest and output. Performance appraisal assesses the relative worth of each employees to the organization. It is also helpful for planning employee development.Therefor performance appraisal is helpful in the following ways.

1.Performance feedback:Actual performance and standard performance are compared to identify deficiencies. Strength and weakness of each employees is known and that are communicated to them as feedback.

2.Reward management:An equatable performance appraisal should be established. Employees performing best performance should be rewarded whereas below standard should be sent for development.

3.Training and development decision:Performance deficiencies are identified by performance appraisal.This helps determining training and development needs.employees performing bellow standard are suggested for development.

4.Validation of selection text:Performance appraisal results can be compares with the scores of selection test to find out the validation of selection tests.

5.Policy formulation:Policies related to performance appraisal, training,promotion, transfer, management development etc can easily be formulated with the help of performance appraisal.

6.Proromotion,transfer:Outstanding and promising performance should be promoted for higher position. Sometimes, to fit employees and job, they have to be transferred where as very low performer should be terminated.

In this manner performance appraisal improves management ways and intention and interest of employees.Employees can get motivation for better performance with the seek of getting reward,promotion, career development