Objective of Performance Appraisal

Objective of Performance Appraisal

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.

Performance Appraisal can be done with the following objectives in mind:

  • To maintain records in order to determine compensation packages, wage structure, salaries raises, etc.
  • To maintain and assess the potential present in a person for further growth and development.
  • To provide a feedback to employees regarding their performance and related status.
  • It serves as a basis for influencing the working habits of the employees.
  • To review and retain the promotional and other training programmes.

The objective of performance appraisal: There are many objectives of performance appraisal. Some are given below –

To select employees: To select employees for increment, promotion, transfer, training, and other purposes.

To determine the level of training: To determine the level of training so that program may make success considering the objectives of the organization.

To motivate the employees: To motivate the employees with a view to getting things done by them.

To create interest: To create interest of employees for self-development so that they may be offered higher positions whenever necessary in future.

To create a base for proper decision making: To create a base for proper decision making on an important matter so that every activity can be completed promptly.

To undertake research project: To undertake research project by collecting human and non-human information