An effective
performance appraisal system can be of benefit to three parties they are for
organization, for appraiser and for appraisee.
1)
For
the Organizations:
Following are
the benefits of an organization.
Þ
It leads to
better performance throughout the organization, due to successful communication
of the objectives and values of the organizations, sense of being close to the
organization, loyalty and improved relationships between managers and staff.
Þ
Overall
improvement in the duties performed by each employee of the organization.
Þ
Due to
performance appraisal of employee new ideas for improvement in their work is
generated.
Þ
Long-term plans
can be generated.
Þ
The need for
training and development can be identified more clearly.
Þ
A traditions of
nonstop improvement and success in the organization can be formed and
maintained.
Þ
Career
development plans can be chalked out for capable employee to enhance their
performance in future.
2)
For
the appraiser:
Following are
the benefits to the appraiser:
Þ
It gives an
opportunity to the appraiser to develop a general idea of individual jobs and
departments.
Þ
For every new
or difficult situation new idea is generated for improvement or for overcoming
that problem.
Þ
It gives an opportunity to integrate team and individual objectives
and targets with departmental and organizational objectives.
Þ
It gives an opportunity to explain the amount of work expected by
manager from teams and individuals.
Þ
It gives an opportunity to focus more on targets.
Þ
It enables to form more productive relationship with staff based on
mutual trust and understanding.
3)
For the Appraisee:
Following are the benefits for the appraisee:
Þ
Increased motivation.
Þ
Increased job satisfaction.
Þ
Increased sense of personal value.
Þ
Increase in morale of an employee.
Þ
It gives an opportunity to know their strength and weaknesses.
Þ
It gives an idea about areas of their improvement.
Þ
There will be a chance to subordinate to express his views even after
performance appraisal.
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any suggestion on my side