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B) Advantages of The Performance Appraisal

Performance appraisals provide several advantages for businesses. They allow for more objective analysis of employee performance which can help guide promotions and layoffs based on metrics rather than relationships. Performance reports also motivate employees to improve by recognizing past accomplishments and setting goals for the future. Additionally, appraisals serve as early warnings for employees performing below standards by identifying problems and suggesting improvements. Overall, an effective performance review system can enhance employee job performance, ensure legal compliance, and minimize dissatisfaction and turnover.

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51 views

B) Advantages of The Performance Appraisal

Performance appraisals provide several advantages for businesses. They allow for more objective analysis of employee performance which can help guide promotions and layoffs based on metrics rather than relationships. Performance reports also motivate employees to improve by recognizing past accomplishments and setting goals for the future. Additionally, appraisals serve as early warnings for employees performing below standards by identifying problems and suggesting improvements. Overall, an effective performance review system can enhance employee job performance, ensure legal compliance, and minimize dissatisfaction and turnover.

Uploaded by

panduh Amukambo
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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b) Advantages of the Performance Appraisal

Corey Sandler &Janice Keefe (2004) Performance appraisal is an important tool for many
businesses and organizations as it gives supervisors an opportunity to evaluate employees and
identify problem areas. Performance reports are useful in developing long-term business plans.
However, despite the advantages to completing them, there are certain drawbacks that employees
and supervisors should be aware of.

 Objectivity
One of the advantages of a performance evaluation is the objectivity with which supervisors
analyze employees. Most appraisals result in a numerical value for each worker, and this can be
more useful in charting progress than infrequent, informal evaluations. These metrics also allow
administrators to rank employees in terms of value in certain areas, so that decisions about
promotions or layoffs won't allow for personal relationships to lead to bad business decisions.
Appraisal allows right decision to be made which can contribute to competitive strength of a
firm.

 Motivation
Performance reports give employees motivation, both in terms of working toward a better
evaluation in the future and receiving tangible positive feedback for past accomplishments.
Employees who work hard and see their appraisals improve may feel as though they are being
recognized properly and will desire to continue to perform this way in the future.

 Warnings
Evaluations also have the advantage of providing an early warning to an employee whose
performance falls short in certain areas. Before a worker's productivity degrades to the point of
threatening the job, a formal meeting about accomplishing work duties may point out problem
areas and include suggestions for improvement.

 Improving performance
An effective appraisal system can contribute to competitive advantage by improving employee
job performance in two ways by directing employee behavior towards organizational goals and
by monitoring that behavior that the goals are met.

 Ensuring legal compliance


Promotion made on factors other than performance might land up a firm in legal battle, thus
diverting its focus on non-productive areas. Companies can minimize costly performance by
using appraisal systems that give fair and accurate ratings.

 Minimizing job dissatisfaction and turnover


Employees tend to become emotional and frustrated if they perceive that, the ratings they get are
unfair and inaccurate. Such employees find that the efforts they had put in became futile and
obviously get demotivated. An organization having satisfied and motivated employees will have
its age over its competitors.

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