What Is Performance Appraisal ?
Performance appraisal is a technique of evaluating the strength and weakness of employees' performance in the organization. It helps the management to identify the area of improvement and to determine the training and development need to boost their performance.
Main advantages and disadvantages of performance appraisal can be expressed as follows:
Advantages Or Benefits Of Performance Appraisal
1. Performance Report
Performance appraisal helps the management to assess employee's job performance by providing past report.
2. Determining Training Need
It provides detailed information regarding skill, knowledge and past performance report of employees. So, it helps to determine training and development programs to enhance future performance.
3. Guidance
It helps the employees to review their mistakes and guides to correct them in order to avoid possible errors in the future.
4. Corrective Action
Performance appraisal identifies the deficiency of workers. So, appropriate corrective actions may be initiated in time.
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5. Motivation
It helps to determine rewards and compensation scheme on the basis of performance. So, employees are motivated for better performance.
6. Better Communication
It help to establish better two way communication in the organization.
7. Proper Pay Structure
It helps the organization to set proper pay structure of each individual on the basis of their performance.
Disadvantages Or Limitations Of Performance Appraisal
1. Time Consuming Process
It is a lengthy process of evaluating employees' excellence. It takes more time especially in the large organizations with many subordinates.
2. Stressful Process
It is a stressful process of rating employee's performance.
3. Potential Of Inaccuracy
There is a chance of inaccuracy due to wrong document and irrelevant records of appraisal period.
4. Biased
Rating of appraisal's outcome may be biased because of different interpretation of management and employees.
