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Relevance of Performance Appraisals

Updated on December 10, 2014

Employee appraisals are systems used by managers to assess job performance, develop a system of pay merit that is fair, and which act as the basis for promotions. In the context of U.S, many organizations and HR professionals have a strong believe in the value of providing regular individual performance appraisals. This owes to the assumption that many workers have a culture of working against average routine measures. Further, HR professional also argue that individual performance appraisals help in determining skills necessary in performing specific jobs, as well as for promotion purposes. Moreover, individual performance appraisals are also the preferred tools used by these organizations and HR personnel in determining financial compensation that should be awarded to individual employee (OPM, 2014).

My own experience regarding employee appraisals is that employees can as well benefit in a number of ways from the process. In my perspective, I was able to realize and know what is wanted from me and therefore, could be able to set the goals and objectives in my work. In addition, I also get to discover where my weaknesses lie and therefore, be in a position to improve.

In essence, when appraisals are competitively done, they improve the overall effectiveness of a company. Through the functional areas of performance appraisal systems productivity is increased in the company. Appraisals serve an administrative purpose for companies through providing an orderly means of increasing salaries and other rewards. The administrative function also serves to delegate authority to capable individuals. Further, appraisals also supply managers and appraisees with information about strengths and weaknesses of workers. This helps managers to put up strategies to build on the strengths of the staff and leverage weaknesses to increase productivity (Fletcher, and Konovsky, 2009, 116).


Both Workers and Management have mutual benefits arising from performance appraisals


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