Performance appraisal system is essential in accessing productivity in any organization. It boosts employee performance by providing the actual contribution of each employee to the organization. The process analyzes annual reviews relating to performance and productivity. Moreover, developing an evaluations form and conducting assessments is part of the appraisal process. The feedback provides an opportunity for employers to promote hardworking employees and create a positive working culture.
Pros and Cons of Appraisal System
Appraisals provide feedback on organizational performance by analyzing the contributions of each employee. As a result, it adds value to the organization and improves management strategies. Identification of workforce goals and achievement strategies occurs through appraisals (Dusterhoff et al., 2014). The management identifies specific strategies required for employee improvement. Addressing the employee needs contributes significantly to productivity. Through the appraisal systems, the relationship between the employee and the employer is improved thus creating a room for communication between the two parties. Increased opportunities for dialogue enhanced morale and allow the employees to address risk and threats facing the company (Lira, 2014). It explores new opportunities on investing in human capital through by generating objective that improves on human resource management.
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