performance of employees

Why company needs performance appraisal ?

Why performance appraisal is needed

performance appraisal
performance of the employees

What is  Performance appraisal?

A performance appraisal is a review of an employee’s work performance over a period of time. A performance appraisal is a process that organizations use assess employees performance and identify areas that need improvement . The appraisal may include a review of the employee’s past performance a discussion of current performance, and a plan for future performance. It is a way to asses employee’s job performance . It is a part of company’s performance management system. It is based on employee’s progress against goals set once a year with his or her manager.


A performance appraisal is a way to assess an employee’s job performance. A performance appraisal is a review of an employee’s work over a period of time, usually one year. It is used to help assess an employee’s skills, abilities, and achievements, and to identify areas where they need improvement.


 According to Gomez-Mejia

“Performance appraisal involves the identification, measurement and management of human performance in organization.”


 employees ranking
Employees work performance

Performance appraisal should be based on an objective evaluation of an employee’s job performance.

Employees should be given feedback on their performance on a regular basis.

Appraisals should be conducted using a variety of methods, such as surveys, interviews, and observation.

The appraisal process should be fair and impartial.

Appraisals should be used to check areas where employees need improvement.

The purpose of performance appraisal is to help employees improve their job performance, not to punish them.


To provide feedback to employees on their performance

To identify employee training and development needs

To identify high-performing employees for promotion or other rewards.

To identify under-performing employees who may need coaching or other corrective action.

To help employees understand how their performance contributes to the organization’s goals.

To create a record of employee performance for future reference.


Performance appraisals help identify strengths and weaknesses in individual employees.

It can provide valuable feedback to help employees improve their work.

The Performance appraisals can help managers identify training and development needs.

Performance appraisals can help identify employees who are not meeting expectations.

It can help motivate employees to improve their performance.

Advantages/ Disadvantages
advantages and disadvantages
performance appraisal is beneficial to company

There are a number of advantages and disadvantages associated with performance appraisals. Some of the advantages include:

Performance appraisals can help identify areas where employees need improvement.

It can help set expectations for employee behavior and performance.

Appraisals can help motivate employees to meet or exceed performance standards.

  It can help provide feedback to employees about their work.

Performance appraisals can help identify training and development needs.

 Some of the disadvantages associated with performance appraisals include:

It can be time consuming and expensive to administer.

It can create feelings of anxiety or stress in employees.

 It can create an environment of competition rather than cooperation.

This can be subject to personal bias.

It can be used as a tool for discrimination.


The performance appraisal is a useful tool for assessing an employee’s job performance and identifying areas in need of improvement. However, it is important to keep in mind that the appraisal is only one part of the bigger picture when it comes to employee development.

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