Page 104 - DMGT106_MANAGING_HUMAN_ELEMENTS_AT_WORK

Managing Human Element at Work

Notes 5.1.2 Uses of Performance Appraisal

• It serves as a means of telling a subordinate how he is doing and suggesting necessary
changes in his behaviour and attitudes.
• It thus provides information, which helps to counsel the subordinate. It also serves to
stimulate and guide employee’s development.
• It is useful in analysing training and development needs. These needs can be assessed
because performance appraisal reveals people who require further training to remove
their weaknesses.
• Performance appraisal serves as means for evaluating the effectiveness of devices used
for the selection and classification of employees.
• It therefore helps to judge the effectiveness of recruitment, selection, placement and
orientation systems of the organization.
• Performance appraisal facilitates human resource planning and career planning.
Permanent performance appraisal records of employees help management to do human
resource planning without relying upon personal knowledge of supervisors.
• Performance appraisal promotes a positive work environment, which contributes to
productivity. When achievements are recognized and rewarded on the basis of objective
performance measures, there is improvement in the work environment.

Figure 5.1: Performance Appraisal Process

JOB ANALYSIS
JOB DESCRIPTION AND JOB SPECIFICATION

ESTABLISHING STANDARDS OF
PERFORMANCE

COMMUNICATING PERFORMANCE
STANDARDS TO EMPLOYEES

MEASURING ACTUAL PERFORMANCE

COMPARING ACTUAL PERFORMANCE WITH
STANDARDS AND DISCUSSING
WITH EMPLOYEES

INITIATING CORRECTIVE ACTION,
IF NECESSARY

Draw a flowchart of performance appraisal process.

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