Question

Discuss the merits of performance appraisal.

Answer 1

1. Promotion: Supervisors use performance appraisals to plan promotions for efficient personnel. Inefficient employees may face dismissal or demotion.
2. Compensation: Performance appraisals assist in determining employee remuneration packages. Performance appraisals provide for merit assessment. Performance appraisal tries to give worth to a performance. Performance appraisal determines compensation packages, including bonuses, high wage rates, extra benefits, allowances, and prerequisites.
3. Employee Development: Performance appraisal is a systematic process that helps supervisors develop training policies and programmes. Analysing employees' strengths and shortcomings allows for the creation of more efficient jobs.
4. Selection Validation: Performance appraisals can help supervisors better understand the selection process. They gain insight into the procedure's legitimacy, strengths, and limitations.
5. Communication: Effective communication between employees and employers is critical for organisational success. Performance appraisals provide opportunities for communication in the following ways:
   1. Performance appraisals help companies comprehend and accept subordinate's skills.
   2. Subordinates can develop trust and confidence in their superiors.
   3. It also helps in maintaining cordial and congenial labour management relationships.
   4. It develops the spirit of work and boosts the morale of employees.
      All of the criteria mentioned above promote good communication.
6. Motivation: Performance appraisals are used to motivate employees. Evaluating employee performance helps measure their efficiency and achievement of targets. This inspires individuals to excel at their jobs and enhances future performance.