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Questions and Answers
What is the primary purpose of a performance appraisal?
What is the 'performance gap' in the context of performance appraisal?
What is the main aim of the evaluation system in a performance appraisal?
What is the primary function of the feedback system in a performance appraisal?
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What is the purpose of a performance appraisal system in an organization?
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What are the two basic systems that operate in conjunction in an effective performance appraisal system?
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What is one of the main purposes of performance appraisal from the employee's point of view?
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What is a benefit of performance appraisal in terms of employee development?
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What is one way performance appraisal helps with communication?
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How does performance appraisal serve as a motivation tool?
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What is one of the objectives of performance appraisal?
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What is a benefit of performance appraisal in terms of selection validation?
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Study Notes
Performance Appraisals
- Evaluate an employee's skills, achievements, and growth to identify areas of strength and improvement
- Used to justify pay increases, bonuses, and termination decisions
Definition of Performance Appraisal
- Systematic evaluation of employees with respect to their performance on their job and potential for development
- Measures productivity in terms of efficiency and effectiveness
Components of Performance Appraisal Systems
- Evaluation system: identifies performance gaps between actual and desired performance
- Feedback system: informs employees about their performance and receives feedback from them about job problems
Objectives of Performance Appraisals
- Providing feedback to employees
- Facilitating promotion decisions
- Informing rightsizing or downsizing decisions
Advantages of Performance Appraisals
- Helps in promotion decisions for efficient employees
- Assists in designing compensation packages based on merit
- Identifies strengths and weaknesses for employee development and training
- Validates selection procedures
- Fosters effective communication between employees and employers
- Motivates employees by evaluating their performance and setting targets
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Description
Test your knowledge of performance appraisals, including their purpose, benefits, and importance in employee evaluation and development. Learn how companies use them to provide feedback, justify pay increases, and make termination decisions.
