1 - Provide guidance and direction to the employee
2 - improve employee performance at work
3 - Development and staff development in the employee through their needs to new knowledge and skills
4 - justification for promotion, transfer or termination
5 - motivate subordinates whether to recognize good performance or to improve the performance of induction
by
Rana ElBehery , Acting as HR Business Partner , MBC Group
The purpose of performance appraisal is many folds. However, there are two broad purpose of performance appraisal as depicted below:1. EVALUATION:
To let employees know where they stand relative to performance objectives and standards. An effective entails the following:
• Establishes performance standards that are measurable performance standards.
• Sets mutually acceptable and measurable performance standards.
• Provides continues feedback to employees about their performance.
• Accurately measures performance.
• Compares performance with performance standards.
• Develops employees where necessary or take corrective action where appropriate.2. DEVELOPMENT:
Assist in training and continued personal development of people. Developed employees are more motivated commuted and competent to achieve their work roles and goals. They can contribute effectively in improving the organization effectiveness.
Performance appraisal is a formal, structure system that compares employee performance to established standards. Purpose of performance appraisal can be broadly of two types viz; administrative purposes and developmental purpose.
Administrative Purposes: Administrative purpose includes:
Document human resource decision with regard to performance and its
related issues. Determine promotion of employees.
Determine transfer and change in job assignments.
Identify poor performance areas of employees.
Decide on layoffs.
Meet legal requirements.
Evaluate the performance of training programmers.
Decide on salary and reward issues.
Decide retention or termination.
Performance evaluations can serve as effective tools for improving employee performance and productivity as well as determining employee developmental needs. Implemented properly, regular performance reviews can raise individual self-esteem and deepen the relationship between supervisor and subordinate. People often perform better when they have an idea how their supervisor views their work, knowledge and skill. They are more likely to initiate honest conversation regarding goals and job-related issues as well.
Purpose of Performance Appraisal:
1. It helps in giving the feedback to the employees about the performances.
2. It creates competition among the employees for better performance.
3. The hike and designation of the employee depends on P4P (Pay for Performance.)
4. It enhances the productivity in the process of an individual as well as a team.
5. It is a tool to justify and check the employee's performance and rate them as their performances for that particular period or year.
