Significance Of A Good Performance Appraisal System For An Organization!

The success of every organization depends largely on the availability and quality of well- motivated and satisfied human resources. Organizations are now more focused on the need to get more from their employees if they are to achieve organizational objectives. The tool used is the performance appraisal. It measures employees’ skills, knowledge, and attitudes and determines specific decisions for employees’ improved performance and satisfaction.

Employee satisfaction is considered a key to organizational success. Khan (2007) defines employee satisfaction with job as how well one’s personal expectations at work are in line with outcomes. People enjoy working and strive to work in organizations that provide a positive work environment where they feel they are making difference and where most people in the organization are proficient and pulling together to move the organization forward. The final outcome of the satisfied workforce in an organization would be the enhanced organizational productivity.

Performance appraisal is a process is a process by which the activity of employees is investigated and measured officially and in certain intervals (Saadat, 2006). Performance appraisal is an important systematic tool for developing staff, supporting them, giving them the opportunity to look at what they are doing and what they have done, how well they are doing it and done it, and in what areas they need help to develop. Performance appraisals are essential for the proper management as well. Generally, the annual performance appraisals are common when it comes to the organizational environment.

For an organization, the information provided by the performance appraisals is highly useful in making decisions regarding various personal aspects such as promotion and merit increases. Employees Performance is the thing that supporting the organization’s strategic aims. It is a function of things like communication, training, and supervision than of his or her own motivation. So performance measures also link information gathering and decision making processes which provide a basis for judging the effectiveness of personnel sub-divisions such as recruitment and selection, training, compensation, etc. Accurate information of the systems plays a main role in the organization. They help to find out the weaknesses in the different areas.

Performance appraisal system has different stages such as  Establish Performance Standards, Communicate Performance Expectation to Employee, Measure Actual Performance, Compare Actual Performance with Standards, Discuss the Appraisal with the Employee and  Initiate Corrective Actions (Lawrie, J, 1990).

And to ensure the reliability and validity of a performance appraisal system, a company must design the evaluation process carefully and develop appropriate measuring scales. Employees can be appraised against expected standards or objectives.

Hence a well-developed performance appraisal will improve staff understanding on business strategy, link goals to the company mission, cascade the business strategy down to individual performance objectives, giving and receiving performance feedback and will set goals for moving people towards expected performance levels.

References

Khan. A (2007) Performance Appraisal’s Relation with Productivity and Job Satisfaction.

Journal of Managerial Sciences 1 (2):100-114

Saadat, E. (2007). Human Resource Management. Tehran: SAMT Publications.

Lawrie, J., (1990) Prepare for a performance appraisal: Personnel Journal Vol 69,