Performance Appraisal in HRM Methods, Pros & Cons in 2020

Advantages of Performance Appraisal are:

1. Find The True Potential of The Employee

Performance appraisal helps the HR department and the company learn about the strengths and weaknesses of an employee. This process can, therefore, be used to truly learn about the employee’s interests and potentials. This analysis can help the HR department to choose the right employees for a job. The HR department can even suggest the employee switch to a department that fits them better.

2. Promotes Employee Development

The quickest way to improve an employee’s performance is by providing them with specific feedback. The performance appraisal process includes giving employees feedback about their strengths and weakness. The employees can use this information to develop themselves further.

3. Acts as a Motivator

Employees crave feedback. When they receive that it can act as a motivator for them. Knowing their weaknesses can help employees give their best and improve upon the areas they’ve missed out on. This can work as a boost to the entire office or team.

4. Focused Employee Training & Development

Planning and development programs are important for any organization. The performance appraisal can show exactly where a majority of the employees lack in terms of training and development. The HR department can then create programs according to those gaps. This will be more beneficial for the employees and will be a successful program of training and development.

5. Improves Employee & Management Relationship

be m The performance appraisal gives employees an opportunity to truly share and discuss the problems that they are facing in their role. This builds a healthy environment for both the manager and the employee.

6. Promotion & Transfers

It is difficult to make the correct decision about who to promote and who to transfer without any data. The performance appraisal can be useful for learning in which talents should be rewarded and which need to be pushed to do better. It ensures that the decision is made based on facts and figures rather than personal biases.

7. Mentoring From Superiors

Managers are a crucial part of any appraisal system. They are the ones handling the administrative and feedback work in an appraisal. Good managers are good mentors, meaning that they are able to guide their employees to reach their maximum potential. Managers must not only focus on the weaknesses, but they must highlight employees’ strengths too.

Originally published at https://www.startuphrtoolkit.com on September 2, 2020.