Why is the performance appraisal important?

Significance of performance appraisal:

• This is helpful into operational decisions of personal management relating to pay raises, lay-offs, promotions and transfers and more.

• This provides clues to management for effecting enhancements in selection procedures and placement of workers.

• On the origin of performance appraisal, all the top management can advise/direct to their personnel department to implement and design suitable training programmes.

• This guides and stimulates worker development

• This encourages healthy competition in between employees.

• This seeks to discover the potential for development in workers and therefore helps management to prepare promising employees to take up challenging jobs into future.

• This attracts good personnel to the organization

• Throughout the process of performance appraisal, the management gets a concept of the difficulties faced by the workers while working upon the jobs. Management can take therefore take suitable steps to redress their grievance.

• This highlights a requirement for more competent supervisors, to carry out the task of judging the employees during an objective and intelligent way.

• Performance appraisal seeks to calculate employees’ performance within a systematic manner.