The current situation the definition of employee contribution is not only dependent on the output i.e. the end results achieved but also depends on the inputs by the employee i.e. what the employee is willing to contribute to the business. Appraisals help setting goals for the company and each individual within the organisation hence making the employees more involved and related to the organisational goals. Another very essential reason for the introduction of appraisals is the fact that it helps improve the relationship of the management with the employees, and reduces the involvement of trade unions for bargaining purposes.
This helps the management to establish complete control over the company and reduces the involvement of trade unions. Conducting performance appraisals on a regular basis helps the employer provide the employee with feedback and advice on how to improve in areas that require correction. This is the best way to communicate any strength the employees have and also to discuss the weaknesses and provide possible solutions. Since most of the performance appraisals are very open and it allows employees to rate their supervisors as well.
This allows a better understanding and better relationship among the employer and employee. Apart from the feedback, performance appraisals help keep track of the developments in the employees career. Since performance appraisals are open discussion, it is possible for employees to discuss their career objectives and make strategic decisions to maximize their career potentials. Also it allows the employers to recognize the contributions of the employees to the job and allow them to decide if the employees deserve to be promoted (Weightman, 2004).
Since these meeting acts as a refresher to the employee’s performance history a lot of personnel decisions like compensation decision making, promotions etc. can be made during these sessions. Performance appraisals allow the employers to explain
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