The most challenging aspect of a performance appraisal is measuring the actual performance of the employee. Since the performance is measured by tasks performed, there is a continuous process that must be administered in order to monitor the performances throughout the appraisal cycle.
Thus, it’s very important to choose the correct measuring techniques. It’s also important to focus on a desired performance (standardized performance) and then compare the desired performance to the actual performance of the employee. All of the planning that goes into the performance appraisal is for the purpose of evaluating employees, providing employees with valuable feedback and creating a positive effect on future performance. Although the process may be tedious, the end result is one of great importance. Some of the positive results of performance appraisals are:
- It encourages employees to perform better in the future
- It presents an opportunity for employees to leverage positive performance for an increase in salary or promotion
- During the appraisal, employees can discuss strengths and weaknesses with a supervisor, in effect, allowing employees to discuss personal concerns
- It provides communication between a supervisor and employee on a regular basis to discuss job duties and issues with work performance
- It allows employees to identify what skills may be lacking and need to be acquired or improved upon. There are instances when education provided by the company is a necessity to advance success overall
- It holds employees accountable for their job performance, and since the employee knows that an appraisal is coming, the employee has the opportunity to prepare in advance
- It provides the opportunity for managers to explain organizational goals and the ways in which employees can participate in the achievement of those goals
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