Benefits of Performance Appraisal - QS Study
QS Study

Performance Appraisal is the methodical assessment of the performance of employees and to understand the abilities of a person for further development and progress. It is also known as performance rating, performance evaluation, employee assessment, performance review, merit rating, etc.

Benefits of Performance appraisal: Though a successful performance appraisal program, a number of benefits can be accrued to the organization as well as its employees. These benefits can be pointed out classifying then into following areas –

Eliminating of misunderstanding: It eliminates misunderstanding among the employees.

Knowledge of results: Through Performance appraisal knowledge of the result of works can be furnished to the employees.

Improved performance: If performances of employees are properly measured, their activities may be of high quality.

Determining training needs: With the successful appraisal of performance, training needs of employees assess accurately.

Sources of information: Proper performance appraisal also help the management get the correct information for making future plans and policies.

Cordial relations: Harmonious relation among the employees may be created if their performance toughly evaluated and a proper reward is offered.

Motivation and incentives: Effective performance appraisal can be used as motivational tools and incentives for deploying sincere efforts.

Procedural benefits: Organizations can enjoy sonic procedural benefits of regular conducting the performance appraisal program.

Participation: Which employee or manager is suitable for taking part in the decision-making the process that can be known by the performance appraisal of employees?

Easy supervision: Which employee is to be supervised and which not can be decided by proper performance appraisal.