Performance Appraisal – by Shikha Tandon

Performance Appraisal

People differ in their abilities and aptitudes.These differences are natural to a great extent and cannot be eliminated even by giving the same basic education and training to them.Therefore, it is necessary for management to know these differences so that the employees having better abilities may be rewarded and the wrong placements of employees may be rectified through transfers. Thus there’s a need to have suitable performance appraisal system to measure the relative merit of each employee.
Performance Appraisal refers to all formal procedures used in working organisations to evaluate contributions and potential of group members.
The performance appraisal program may be implemented ro achieve the following objectives :
* To serve as the basis of personnel decisions like transfers and promotion.
* To locate employees who have adequate potential for promotion and development.
* To know the quality of performance of each employee and identify their strength and weaknesses.
* To design training programme for the improvement of the quality of personnel.
Performance Appraisal can be used as a basis of sound personnel policy in relation to transfer and promotion. If the performance of an employee is better than the others, he can be recommended for promotion, but if a person is not doing well on a job,he may be tranferred to some other job.
Performance Appraisal may not yield the desired results because of the following deficiencies like ; If the factors included in the assessment are irrelevant, the result of performance appraisal will not be accurate.
Performance Appraisal has become a very significant activity in most of the enterprises.

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