purpose of performance appraisal

1. Purpose of performance appraisal
PERFORMANCE APPRAISAL
Performance Appraisal is very important for every kind of organization. It is a
justification of an individual employee. if we take the literal meaning of performance
The act of performing or fulfillment of an obligation or a promise; especially,
completion of ones, duty.appraisal An expert or official valuation.
Performance Appraisal is defined as structured formal interaction between a
subordinate and supervisor, where the work performance of the subordinate is to be
taken into consideration, with a view to identifying weaknesses and strengths as well
as opportunities for improvement and skills development. Appraisal results are used
to determine reward outcomes. That is, the appraisal results are used to identify the
better performing employees who should get the majority of available merit pay
increases, bonuses, and promotion. Simultaneously appraisal results are also used to
identify the poorer performers who may require some form of counseling, or in
extreme cases, demotion, dismissal or decrease in pay. Performance Appraisal is a
part of career development
PERFORMANCE APPRAISAL METHODS
The Critical Incident File
The Critical Incident File is a performance appraisal method in which the manger
writes down positive and negative performance behavior of employees during their
employment period.this file is a form of documentation.
The Rating Scales
The Rating Scale is a form on which the manager simply checks off the employees
level of performance. The possible evaluated areas include quantity of work, quality
of work, dependability, judgment, attitude, cooperation and initiative.
Behaviorally Anchored Rating Scales (BARS)
BARS is a method combining rating and critical incidents. Is is more objective and
accurate. Rather than having excellent, good, average. the form has several statements
that describe the employee performance, from which the manager selects the one that
best describes the employee performance for that task.
Ranking
Ranking method is used to evaluate employee performance from bets to worst. Under
this method, the manager compare an employee to another employee, rather than
comparing each one to a standard measurement. A predetermined percentage of

2. employees are placed in performance categories for e.g excellent-5%,good-10%,
average-15%.
Management By Objectives
Management By Objectives is a process in which managers and their employees
jointly set objectives for the employee, periodically evaluate the performance, and
reward according to the result
The Narrative Method
This method requires the manger to write a statement about the employee
performance. Managers may be allowed to write whatever they want, or they may be
required to answer questions about employee performance
Conclusion
For an effective management and do best evaluation among personnel, performance
appraisal is very essential instrument. it generally review each individual performance
against agreeing objective, standard and delegation of responsibilities and
tasks.Performance Appraisals are important for staff motivation, attitude and
behavioral development, communicating and aligning individual as well as
organizational aims and having positive relationships between management and staff
and also increase the level of competence among the employee of organization and
their energetic level increase.
As performance appraisal provide a formal, recorded, regular review of an individual
performance so we can plan for future development. In this way the chances of
organizational growth increases.so as profit will also in gain.
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