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Performance Appraisal and Evaluation

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Questions and Answers

What is the primary purpose of a performance appraisal?

To measure an employee's salary and benefits

To give employees big picture feedback on their work (correct)

To provide a basis for employee termination decisions

To identify areas for training and development

What is the 'performance gap' in the context of performance appraisal?

The difference between an employee's current role and desired role

The difference between an employee's current salary and desired salary

The shortfall between an employee's performance and the organization's standards (correct)

The time gap between performance appraisals

What is the main aim of the evaluation system in a performance appraisal?

To identify areas for employee growth and development

To provide feedback to employees on their performance

To determine employee salaries and bonuses

To identify the performance gap between an employee's performance and the organization's standards (correct)

What is the primary function of the feedback system in a performance appraisal?

To inform employees about the quality of their performance Signup and view all the answers

What is the purpose of a performance appraisal system in an organization?

To evaluate an employee's performance and potential for development Signup and view all the answers

What are the two basic systems that operate in conjunction in an effective performance appraisal system?

Evaluation and feedback systems Signup and view all the answers

What is one of the main purposes of performance appraisal from the employee's point of view?

To receive feedback on job problems Signup and view all the answers

What is a benefit of performance appraisal in terms of employee development?

It helps to frame training policies and programmes Signup and view all the answers

What is one way performance appraisal helps with communication?

It helps employers understand and accept skills of subordinates Signup and view all the answers

How does performance appraisal serve as a motivation tool?

By evaluating performance to motivate employees Signup and view all the answers

What is one of the objectives of performance appraisal?

To provide feedback to employees Signup and view all the answers

What is a benefit of performance appraisal in terms of selection validation?

It helps understand the validity of selection procedures Signup and view all the answers

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.