Performance Appraisal Systems Essay Example | Topics and Well Written Essays - 4000 words

Performance Appraisal Systems - Essay Example The evaluation is normally done by the individual's immediate superior in the organization who rates others is also rated by his superior. Performance appraisal employees rating techniques for comparing individual employees in his work group, in terms of personal qualities or deficiencies and the requirements of their respective jobs. It should be differentiated from job evaluation, which is concerned with the determination of worth of different jobs. Performance appraisal refers to the task of the rating or assessing the individual performance and abilities at work. (Yvonne, 1999, p.119) The performance appraisal is a formal programme in an organization, which is concerned not only with the contributions of the members who form part of the organization, but aims at spotting the potential also. The satisfactory performance is only a part of the system as a whole and the management needs more than merely evaluating the performance of the subordinates Performance evaluation is, something of an executive, art and science in itself. One important benefit of the system is that it helps top management to make further judgements about the executives who judge others. The top management can get a sense from the various performance appraisals, about the various departments of the organization and also the need of executive development in the years to come. Performance appraisal helps the supervisors to evaluate the performance and to know the potentials of their subordinates systematically and periodically. (Yvonne, 1999, p.124) Following are the benefits of merit rating: (a) It helps in the correct placement of workers. (b) Performance rating helps in guiding and correcting employees. (c) It helps the employees to know where they stand and consequently they try to improve their performance. (d) The performance appraisal helps to find out the ability of the personnel. This will stimulate them to better their performance in a bid to improve their rating over others. (e) Ratings can be used as the basis of sound personnel policy in relation to transfer and promotion. (f) Performance appraisal helps in designing the training programme in better way. (g) The performance appraisal if done scientifically and systematically will prevent grievances and develop a sense of confidence amongst workers because they are convinced of the impartial basis of evaluation. The making of appraisal ratings has a beneficial effect both on the persons doing the appraisal and the one being appraised. The appraisal brings to attention of supervisors or executives, the importance of knowing their subordinates as individuals. Purpose of Performance Appraisal Systems The object of performance appraisal falls in two categories: Administrative; and Self- improvement (a) Administrative Promotion. This is perhaps the most important administrative use of performance appraisal. It is of common interest to both, management and employees, to promote employees to