Uses of performance appraisals
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This document outlines several uses of performance appraisals in organizations. Performance appraisals are used to: 1) provide feedback to improve employee performance; 2) determine compensation adjustments like pay raises and bonuses based on merit; and 3) make placement decisions for promotions, transfers, and demotions based on past or anticipated performance.
Uses of performance appraisals
- 1. Uses of Performance AppraisalsByCyrilAjith R
- 2. Uses of Performance AppraisalsPERFORMANCE IMPROVEMENTPerformance feedback allows the employee, manager and personnel specialists to intervene with appropriate actions to improve performance.COMPENSATION ADJUSTMENTSPerformance evaluations help decision makers determine who should receive pay raises. Many firms grant part or all of their pay increases and bonuses based upon merit, which is determined mostly through performance appraisals.PLACEMENT DECISIONSPromotions, transfers and demotions are usually based on past or anticipated performance. Often promotions are a reward for past performance.
- 3. Uses of Performance AppraisalsTRAINING AND DEVELOPMENT NEEDSPoor performance may indicate the need for retraining. Likewise, good performance may indicate untapped potential that should be developed.CAREER PLANNING AND DEVELOPMENTPerformance feedback guides career decisions about specific career paths one should investigate.STAFFING PROCESS DEFICIENCIESGood or bad performance implies strengths or weakness in the personnel department’s staffing procedures.
- 4. Uses of Performance AppraisalsINFORMATIONAL INACCURACIESPoor performance may indicate errors in job analysis information, human resources plans or other parts of the personnel management information system. Reliance on inaccurate information may have led to inappropriate hiring, training or counseling decisions.JOB DESIGN ERRORSPoor performance may be a symptom of ill-conceived job designs. Appraisals help diagnose these errors.
- 5. Uses of Performance AppraisalsEqual Employment OpportunityAccurate performance appraisals that actually measure job-related performance ensure that internal placement decisions are not discriminatoryExternal ChallengesSometimes, performance is influenced by factors outside the work environment, such as family, financial, health or other personal matters. If uncovered through appraisals, the human resources department may be able to provide assistance.Feedback to Human ResourcesGood/bad performance throughout the organization indicates how well the human resources function is performing.
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