Performance appraisal, in simple words, is the process of deciding the worth of an employee for an organization. The supervisor who conducts performance checks compares the employee performance with the set standards by the organization, and rate him accordingly.
Performance appraisals are a part of any corporate organization. They are essential for organizational management and for handling the workforce effectively. Let us see the advantages that these appraisals have for the different parties involved in it.
Performance appraisals are mainly conducted for employees to help them understand their strengths and weaknesses and improve themselves accordingly. The management also suggests some ways through which the employees can improve their performance.
In the appraisal session, the employee can discuss the areas where he needs more training and support with the management so that he does not lag behind in the work allotted to him.
Benefits of performance appraisals also include recognition for good work done and getting opportunities for further career development. They can be very useful in providing employees with much-needed motivation, satisfaction and support. These appraisals help an individual understand that the organization is taking keen interest in their career development.
Benefits for Supervisors
The benefits of performance appraisals are also for supervisors who direct the entire process.
During the appraisal process, the supervisors get the time to interact with the employees and understand their difficulties. From the way an employee talks, they can judge his confidence levels and spot his weaknesses. The appraisals give them knowledge of the available human resources and a chance of motivating the employees to achieve better results.
In the appraisals, the supervisors reward ace performers, develop a rapport with all employees, uplift the morale of teams and identify employees needing special attention for uplifting their performance. Supervisors/seniors can also get a lot of job satisfaction and understand the importance of their job through the appraisal process.
A supervisor gets to know of the training and development needs of an employee through appraisal sessions. Once this happens, they can arrange for special sessions in the areas of concern to increase the efficiency of employees in performing their job.
Benefits for the Organization
For all kinds of organizations, performance appraisals are very important to identify candidates with high potential.
The company can get to know about the expectations of the employees from the company, and what is their view about the promotion and pay policies of the management. Employee training plans can be chalked out after considering the areas where maximum employees need improvement.
Performance appraisals help organizations improve the overall workforce efficiency, skills and productivity and build good relationships with each employee. The database which is prepared after the performance appraisal can help to decide how successful the company's induction and recruitment policies are.
Since the employees are the biggest resource for any organization, companies need to think of methods to improve the ways of conducting performance appraisals to satisfy them. Once this is done, you will indeed see an increase in the productivity of your workforce that will help you achieve the set organizational goals.