Benefits Of Performance Appraisal

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Benefits of Performance Appraisal

A performance review or performance appraisal is a way through which the performance of a worker is evaluated with regards to quality, time, cost and quantity. Generally, it is done by a supervisor or manager. Further down are benefits of performance appraisal.

1. Motivates employees

Performance appraisal has a significant effect on the levels of satisfaction and motivation of the employees. It offers employees recognition for all their efforts within the company. The simple existence of the appraisal program in a firm indicates to a worker that the firm is truly concerned with their individual development and performance. This alone has a positive effect on a worker’s sense of belonging and commitment.

2. Employee testing

Evaluation is one of the major objectives of performance review. It is of great importance to evaluate workers objectively to develop and encourage them. Through performance appraisal, the managers find out the efficiency levels of each employee and how best to utilize it. This leads to better management and also fosters good communication between employees and their supervisors.

3. Recruitment

The data received from a performance appraisal are useful for monitoring if an organization’s recruitment practices are functioning effectively. For instance, how well is the performance of workers employed in the previous two years? Appraisal data is also vital for monitoring if the changes made in a firm’s recruitment strategies have been successful. It provides clear information whether the overall quality of employees is staying steady, declining or improving.

4. Training

Performance review provides a great opportunity for a manager to determine individual training requirements. It makes training more relevant through clearly associating it with performance results as well as future job aspirations.

Performance appraisal is time consuming since a manager has to spend close to one hour with every employee prior to writing the review. This can be burdensome if the organization has many employees.

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