Performance appraisal - Essay Example

Performance management focuses on the goals and strategy of the organization and monitors if those goals are being fulfilled accordingly in as effective and efficient manner as possible. (Fletcher, 2001, page 473). In other words, performance management is the managing the organizational resources, mainly human resource efficiently in order to yield the best output and to maximize the organization’s performance overall. (Kim, 2010, page 39). Good performance management integrates all aspects of the organization together fostering effective communication and coordination among employees at all levels.

It works towards continuous performance improvement and organizational development updating its strategy regularly to make sure the process does not stop. (Kim, 2010, 40). Performance Appraisal is an integral part of Performance Management. (Fletcher, 2001, page 473). It is also known as employee appraisal of performance review. (CIPD, 2010, page 1). It is a process through which an employee’s performance for any given period of time is evaluated on the basis of various factors including quantity of work, quality of work, time period, level in the organizational hierarchy, employee cost, etc.

(Werther, Davis, 1996, page 341). Performance appraisal plays a great part in one’s career development. (Idris, 2007, page 37). Regular performance appraisal may help organizations pin point problems in their very preliminary stages, which in turn may help them nip it in the bud. (Camardella, 2003, pages 103,105, 106). It also assists in determining the individual potential of the employees and in developing various training and development programs duly customized according to the needs of the employees.

(Camardella, 2003, page 105). It is also an important tool used in determination of promotions, bonuses, wage increments, etc. It also facilitates in development of a strong