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Performance appraisal is a structured process of evaluating an employee’s work performance to understand their strengths, areas for improvement, and potential for future growth. This process is essential for helping employees develop and succeed within the organization. But what does performance appraisal involve, and how does it benefit both the employee and employer?
A well-conducted performance appraisal doesn’t just assess past performance—it lays the groundwork for continuous growth and career development. By identifying both achievements and areas to improve, performance appraisals help create a clear pathway for employee success within the organization.
Performance appraisal is done to preserve records to determine salary raises, wage structure, compensation packages, etc. Furthermore, supervisors can gauge the weaknesses and strengths of individuals to assign them appropriate and the most fitting responsibilities. It is helpful in evaluating and maintaining the current potential of an employee for further development and growth.
Moreover, performance appraisal gives an opportunity to employees to know their performance status through constructive feedback. Thus, it can directly impact the working regime and habits of the workers. In an effort to crank up their performance appraisal score, they would strive to enhance their performance and productivity. Performance appraisal is also instrumental in reviewing and retaining training and other promotional programs in the workplace.
Performance appraisal helps supervisors and employers to create an efficient promotion program for employees. Those who are inefficient can be dismissed or eliminated. Furthermore, supervisors also come to understand the weaknesses and strengths of the employees. This knowledge helps them design training and development programs and policies.
Supervisors also resort to performance appraisal as a tool to chalk out compensation packages which include allowances, high salary rates, extra benefits, etc., for workers. This tool intends to assign worth to individual performance.