Answer to Question #29318 in Management for NAMITA JHA

Question #29318
What is the need for performance reviews?
What are the benefits of carrying out performance appraisal in organisations?
(5 marks)
(5 marks)
Expert's answer
Performance appraisal may be defined as an evaluation made by the employer or the top management. The purpose of implementing or carrying out performance appraisal activity is to judge the overall performance of the employees in the business organization. It is by means of this activity that the aspects, whether the employee has essentially required skills, knowledge and attitude to perform the current tasks or the assignments to be given in the future, are to be determined periodically. It is necessary for a business organization to carry out the activity of performance appraisal periodically as it entails twofold beneficial effect. To a business it does help to grow strengthening total organizational competencies and creating effectiveness and efficiency. To the employees, making them realize their full potential, it becomes a source to motivate them to do their jobs in the best way.
The benefits are:
1. One of the most important benefits for an employee is that he clearly understands his role in the organization, and what is exactly expected from him.
2. During the appraisal process, the supervisors get the time to interact with the employees and understand their difficulties. Through performance evaluation the supervisors can identify the strengths, weaknesses, job knowledge, skills and commitment of an employee.
3. Performance appraisal helps to evaluate the actual performance of employees against the expected performance.
4. An appraisal process can provide a basis for improving the performance of employees. It helps to identify the training and development needs for employees who do not meet the set standards.

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