It helps the supervisors to chalk out the promotion programs for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case. It helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. PA tries to give worth to a performance. Compensation packages which include bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority.
The systematic procedure of PA helps the supervisors to frame training policies and programs. It helps to analyze strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programs. It helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard. For an organization, effective communication between employees and employers is very important. It serves as a motivation tool. Through evaluating performance of employees, a person’s efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future. Disadvantages of Performance Appraisal
If not done right, they can create a negative experience.
Performance appraisals are very time consuming and can be overwhelming to managers with many employees. They are based on human assessment and are subject to rater errors and biases. Can be a waste of time if not done appropriately.
They can create a very stressful environment for everyone involved.
What Are the Benefits of Performance Appraisals to the Organization?
The performance appraisal is an essential part of the human resources department’s contribution to an organization. An effective appraisal may not only eliminate behavior and work-quality problems, it can motivate an
employee to contribute more. Often, a company will ask its employees to perform “360-degree feedback” that assesses peers and subordinates as well as supervisors and management. Regardless, the opportunity to receive — and give — constructive criticism shouldn’t be ignored. Improving Communication
All too often, employees and managers don’t get along and can’t understand why. Problems that stem from a lack of communication can sometimes be resolved with a performance appraisal. If the appraisal is used as an opportunity to describe the criteria on which performance is judged — using meaningful and relevant examples — then the employee will walk away from the meeting with a better understanding of how to best perform his job. For example, “John, when I say you need to be more customer-focused, what I really want is to see you greet the customers with a smile when they enter the store, and ask how you can help.” Providing a Career Path
The performance appraisal is the perfect opportunity to address long-term goals that may not be on the everyday to-do list. Not only does this provide the employee with an opportunity to be of greater use to an organization, the employee feels pleased and valued. Lighting the way toward a successful career path inspires loyalty and stability and can improve the bottom line, especially when the employee’s first concern is the health of the business, and subsequently, her career. Encouraging Good Work and Improvement
Celebrating a job well-done is the easy part of the performance appraisal. Noting areas of improvement is not so easy. Nevertheless, no one is perfect, and the performance appraisal is an ideal time to diplomatically highlight areas that need improvement. Even the most valuable employee could benefit from additional training, while those who are on the cusp of dismissal need the heads-up. Be specific by providing examples and clearly explain what needs to occur to turn things around. Showing an employee that you care enough about them by taking the time to work with them may make even the most hardened employee feel better. Improving Decision-Making Ability
When a company has detailed information on employee performance, business decisions become easier. Filling open positions with existing staff
strengthens the organization and promotes loyalty. Knowing which employees display what strengths improves the speed with which projects can be assigned. Appraisals also provide a framework when making decisions about compensation — and layoffs. If the organization becomes the unfortunate party to a lawsuit, the performance appraisal can refute or support claims. As a result, the effective use of performance appraisals helps an organization operate efficiently and with focus.
180 Degree – a method of measuring performance appraisal of an employee. As we have already discussed about “performance appraisal ‘in the previous blog, it’s quite clear that it’s a method of measuring and giving feedback of any employee performance. 180 Degree is one of the method by which feedback of an employee can be judged and measured. Here two people are involved in the feedback process; one is the employee himself and his immediate boss. The employee share his work experiences including good and bad with the hr people, and the boss gives the feedback of the skills and attitude the employee carry. And then the data collected is matched with the competency norms of the organization and a feedback is prepared about that particular employee. And with this feedback the management takes s further actions for better performance of that employee. This performance appraisal form is used in all big and small scale industries and organization.
What is 270 degree appraisal method?
270 Degree is kind of performance appraisal system.. in 270 degree feedback/ review from self, Boss , and pEErs.