Performance Appraisal and its Importance

FOUNDATION IN
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Overview of performance Appraisal and its importance.............................................................1
Types of performance appraisal and ways in which it can enhance performance of employees 1
Benefits of performance appraisal...............................................................................................2
Limitation and criticism towards performance appraisal............................................................3
Practical perspective of performance appraisal...........................................................................3
CONCLUSION................................................................................................................................6
REREFENCES................................................................................................................................7

INTRODUCTION
Performance appraisal is one of the best and most effective performance management
tool that can be used for enhancing performance of employees. This assessment will focus upon
critical analysis of extent to which performance appraisals are effective for organizations to
enhance their employee’s performance and for this fundamental of management and their
requirement for managers have also been explained in detail.
MAIN BODY
Overview of performance Appraisal and its importance
Performance appraisal can be defined as a kind of systematic evaluation of overall
performance of employees in order to gain understanding of their employees’ ability of their
future growth and development (Berisha Qehaja, Kutllovci and Shiroka Pula, 2017). It is one of
the best and systematic method with the help of which employee development can be done by
analysing their strength and weaknesses as this will help the organization to design their new job
can be for efficient employees. Not only this it helps in framing future development programmes.
Not only this, it helps the organization to identify major chances that are required to be brought
within selection method. It is one of the best way with the help of which communication between
employee and employer can be enhanced as it helps the employers to understand skills of their
employees, develop trust and confidence relationship between employer and employees,
maintain employee relationship and lastly it helps in boosting overall morale of the employees.
Types of performance appraisal and ways in which it can enhance performance of employees
Performance appraisals are done in many ways but majorly in performance appraisals
rewards are categorised into two types intrinsic and extrinsic rewards. Intrinsic rewards are those
rewards that are provided to employees from job itself such as feeling respected from seniors,
showing personal growth etc. Whereas extrinsic rewards are provided to employees in terms of
rewards that employees receive external to their job like bonuses, gifts increased salary,
promotion etc. Both the type of rewards and appraisals are provided to employees using different
types of performance appraisal methods which helps in increasing overall performance of
employees. Some of the most common type of performance appraisals are:
360- degree feedback
It is a kind of performance appraisal. Which is majorly about analysing performance of
employees in the eyes of those who have stake in their performance (Berisha Qehaja, Kutllovci
1