AN UNDERSTANDING TOWARDS BENEFITS AND CONCERNS ASSOCIATED WITH PERFORMANCE APPRAISALS- A STUDY HIGHLIGHTING THE ESSENTIALS OF GOOD APPRAISAL SYSTEM

Abstract

Performance appraisal is a formal and structured system followed by the organizations for reviewing and assessing the performance of employees. Organizations’ initiate the performance appraisals process for administrative purposes and for employee development purposes. For administrative purposes, it assists management in selection; retention; and training of personnel’s, in estimating the number of personnel required, for rewarding and honoring employees, for legal requirements, and for granting hike in employees’ salary. For employee development purposes, the appraisal process is used to communicate employees’ strengths & weaknesses, to identify individuals’ training needs & identify gaps in workers’ performance, to judge the efficiency of human resource personnel’s involved with recruitment, selection etc. and also to reduce the grievances of employees. An effective appraisal would always assist organizations in achieving the organizational goals.

Nevertheless, an appraisal would also be the cause of negative experience when the managers judge the employees’ performance in a biased manner. The purpose of this paper is to focus on the purposes of using appraisals in an organization also to emphasize both the benefits and concerns associated with the appraisals. The main purpose of the study is to emphasis comprehensively the various essential requirements of good appraisal system. The good appraisal system is required to overcome the concerns associated with appraisals and to garner the true benefits of appraisals. The present study recommends that, for the successful achievement of organizational objectives, the appraisal system should be appropriate and effective.