Almost every organization in one way or another goes through a periodic ritual, formally or informally, known as performance appraisal.Performance appraisal has been called many things. The formal performance appraisal has been called a tool of management, a control process, an activity and a critical element in human resources allocation.Uses for performance appraisal have included equal employmentopportunity considerations, promotions, transfer and salary increases.Primarily performance appraisal has been considered an overall system for controlling an organization. Performance appraisal has also been called anaudit function of an organization regarding the performance of individuals, groups and entire divisions. Performance appraisal may be defined as a structured formalinteraction between a subordinate and supervisor, that usually takes theform of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view toidentifying weaknesses and strengths as well as opportunities for improvement and skills development.
OBJECTIVES OF PERFORMANCE APPRAISAL
Employees would like to know from a performance appraisal system:
concrete and tangible particulars about their work; and
assessment of their performance
This would include assessment which would help them to understand
how they did
could do better in future
could obtain a larger share of rewards and
could achieve their life goals through their position
Therefore an employee would desire that the appraisal system should aim at- their personal development, their work satisfaction and their involvement in the organization.
From the point of view of the organization, performance appraisal serves the purposeof:·
providing information about human resources and their development
measuring the efficiency with which human resources are being used and improved
providing compensation packages to employees and
maintaining organizational control.
Performance appraisal aims at the mutual goals of the employees and the organization. This is because employees can develop only when theorganization’s interests are fulfilled. The organization’s main resources are its employees,and their interest cannot be neglected. Mutual goals simultaneously provide for growthand development of the organization as well as of the human resources. They increaseharmony and enhance effectiveness of human resources in the organization.