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Advantages of Performance Appraisal

(1)  SWOT Analysis : Performance Appraisal gives a complete idea of the employee's strength, weaknesses and based on that their opportunities and threats.
(2)  Career Planning : On the basis of one's own SWOT analysis, an employee can have his career plans.
(3)  Suitable Placement : Performance appraisal enables a company to give suitable placement to an employee based on their talents and skills. 
(4)  Self-Development : Performance Appraisal is very much a positive activity which enables an employee to know his own weaknesses and also enables him to remove their weaknesses and lead to self-development. 
(5)  Effective Training Programme : Training programmes can be drawn out on the basis of the needs of employees to remove their weaknesses. 
(6)  Sound Personnel Policies : Personnel policies for promotions, transfer must be sound and objective. Performance Appraisal provides valuable information and reliable data for such decisions. 
(7)  Employee – Employer Relations will be healthy if performance Appraisal information will be used for personnel management. This will minimise grievances and improve confidence in the management. 
(8)  Higher Employee Productivity : Employer morale will be high because there can be a system of rewards for employees with higher performance. This will improve organization productivity. 
(9)  Performance Appraisal will help in potential human resource planning.

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