Why is performance appraisal important

In this file, you can ref useful information about why is performance appraisal important such as
why is performance appraisal important methods, why is performance appraisal important tips,
why is performance appraisal important forms, why is performance appraisal important phrases
If you need more assistant for why is performance appraisal important, please leave your
comment at the end of file.
Other useful material for you:
performanceappraisal123.com/1125-free-performance-review-phrases
performanceappraisal123.com/free-28-performance-appraisal-forms
performanceappraisal123.com/free-ebook-11-methods-for-performance-appraisal

I. Contents of getting why is performance appraisal important

==================
As a business owner, you already know the importance of recruiting capable staff and providing
the employees with the training and tools necessary to do their jobs. To ensure they're performing
to your expectations calls for you to conduct annual reviews of their work product, efficiency
and attitude over the course of their employment. This workplace equivalent of a report card
benefits supervisors and employees by identifying how to bring out their respective best.
Promotion
Performance evaluations provide a look at how and what a worker is doing compared with
earlier reviews of her skill sets, knowledge, initiative and participation in the company vision.
This record reflects whether an employee is prepared to assume greater responsibility. If, for
example, multiple candidates are vying for promotion, but there's only one slot to fill, a
supervisor must justify his choice by pointing to specific examples of outstanding achievement
and professional readiness.
Compensation
Employers want to feel they're getting their money's worth just as much as workers want to see
fatter paychecks with each year of loyal service. While government jobs often have step
increases for designated classifications, as well as across-the-board raises predicated on state
budgets and aggressive union negotiations, private employers base compensation decisions on
individual merit and the company's financial performance. Evaluations are used to assess
whether an employee deserves a salary increase based on achievement and accrued seniority as

well as whether a lump sum bonus is appropriate for solving problems and attracting new
business.
Training Needs
If an employee is struggling with tasks or lagging behind quotas, the problem could be the
quality of training he received. According to HR Hero, an online employment law resource,
ignoring skill deficiencies can jeopardize a company's attainment of its goals. An evaluation that
reveals the need for remedial instruction also defines a time line to revisit the worker's progress.
It's likewise a means for employees to request classes to groom them for additional
responsibilities. When management demonstrates a commitment to help employees do their best,
it doesn't just contribute to company morale--it also elevates individual self-esteem. According to
leading HR expert Donald Kirkpatrick in "Improving Employee Performance Through Appraisal
and Coaching," a supervisor's role in evaluations is akin to a sports coach in recognizing her
team can't win unless every player can perform in peak condition.
Disciplinary Action
In a perfect world, every employee would be hard-working, reliable, honest and enthusiastic to
excel. Not everyone, however, may be as wedded to your own expectations of commitment and
success. Performance appraisals constitute a legitimate paper trail in administrative and legal
proceedings to prove employee negligence, willful disobedience, harassment or criminal
behavior. According to Barry Silverstein's "Best Practices: Evaluating Performance: How to
Appraise, Promote, and Fire," written documentation is generally more effective than verbal
reprimands in addressing underperformance issues and poor attitudes.
Career Goals
Although an evaluation's primary goal is to gauge whether a worker is a good fit for that
company, it serves a larger purpose of helping individuals determine if they've chosen the right
career paths. The feedback a worker receives regarding strengths and weaknesses is invaluable in
charting a future course in which the company and worker can put her interests and talents to the
best use.
==================

III. Performance appraisal methods

1. Essay Method

In this method the rater writes down the employee

description in detail within a number of broad categories
like, overall impression of performance, promoteability
of employee, existing capabilities and qualifications of
performing jobs, strengths and weaknesses and training
needs of the employee. Advantage It is extremely
useful in filing information gaps about the employees
that often occur in a better-structured checklist.
Disadvantages It its highly dependent upon the writing
skills of rater and most of them are not good writers.
They may get confused success depends on the memory
power of raters.

2. Behaviorally Anchored Rating Scales

statements of effective and ineffective behaviors
determine the points. They are said to be
behaviorally anchored. The rater is supposed to
say, which behavior describes the employee
performance. Advantages helps overcome rating
errors. Disadvantages Suffers from distortions
inherent in most rating techniques.

3. Rating Scale
Rating scales consists of several numerical scales
representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are
derived. Advantages Adaptability, easy to use, low cost,
every type of job can be evaluated, large number of
employees covered, no formal training required.
Disadvantages Raters biases

4. Checklist method

Under this method, checklist of statements of traits of

employee in the form of Yes or No based questions is
prepared. Here the rater only does the reporting or
checking and HR department does the actual evaluation.
Advantages economy, ease of administration, limited
training required, standardization. Disadvantages Raters
biases, use of improper weighs by HR, does not allow
rater to give relative ratings

5.Ranking Method
The ranking system requires the rater to rank his
subordinates on overall performance. This consists in
simply putting a man in a rank order. Under this method,
the ranking of an employee in a work group is done
against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job
performance against another member of the competitive
group.
Advantages of Ranking Method
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
employee.
Limitations of Ranking Method
The whole man is compared with another
whole man in this method. In practice, it is very difficult
to compare individuals possessing various individual
traits.
This method speaks only of the position where an

employee stands in his group. It does not test anything

about how much better or how much worse an employee
is when compared to another employee.
When a large number of employees are working,
ranking of individuals become a difficult issue.
There is no systematic procedure for ranking
individuals in the organization. The ranking system does
not eliminate the possibility of snap judgements.

6. Critical Incidents Method

The approach is focused on certain critical behaviors of
employee that makes all the difference in the
performance. Supervisors as and when they occur record
such incidents. Advantages Evaluations are based on
actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases,
chances of subordinate improvement are high.
Disadvantages Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback
may be too much and may appear to be punishment.

III. Other topics related to Why is performance appraisal

important (pdf, doc file download)
Top 28 performance appraisal forms
performance appraisal comments
11 performance appraisal methods
25 performance appraisal examples
performance appraisal phrases
performance appraisal process
performance appraisal template
performance appraisal system
performance appraisal answers
performance appraisal questions

performance appraisal techniques

performance appraisal format
performance appraisal templates
performance appraisal questionnaire
performance appraisal software
performance appraisal tools
performance appraisal interview
performance appraisal phrases examples
performance appraisal objectives
performance appraisal policy
performance appraisal letter
performance appraisal types
performance appraisal quotes
performance appraisal articles