The Performance Appraisal System Commerce Essay

Employees are critical portion of organisational system. If they perform better, they bring efficiency and effectivity in the organisational procedure. Its of import to maintain them motivated as if they are motivated, their morale is high, and they are committed to their work and seek to better the operational procedure by being originative. There are figure of factors that can play of import function in employee motive. Performance assessment is a system through which attempts of employees are recognized and rewarded. It ‘s an effectual manner to maintain employees motivated and develop a spirit of better their public presentation and concentrate on their strengths. An effectual public presentation assessment system motivates employees to put ends for themselves to increase their public presentation degree.

It helps employees every bit good as supervisors to place strengths and failings of employee public presentation ( FILIZ K. MCNAMARA, 2011 ) . The system brings an chance for supervisors and employees to discourse the ends employee set for him, ends of supervisor that he has set for section and discoursing the ways that can be helpful for accomplishing these ends while supervisors and employees working together.

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A good adequate public presentation assessment system creates a nexus between public presentation of employee ‘s outlooks and how employee ‘s attempts are lending in overall success of organisation. It brings two sided benefits, for organisation every bit good as for employees. It works as mechanism, when you recognize the attempts of employees, they will be motivated to convey even better public presentation following clip, and there will be a feeling of importance in employees, this experiencing maintain their morale high, committed to work and excellence, this is an ideal state of affairs when you have employees in such province of moral and motive, as it will give astonishing consequences.

In this state of affairs usage of resources will be maximized and waste of resources will be minimized. Productivity will increase and finally net incomes. So in the basic factor of increased net incomes comes from employee side, this clarifies the importance of good employee public presentation in profitableness ratio. So when they play such a cardinal function they should be rewarded decidedly.

It must be kept in head while honoring employees that reward system should be merely and just and the wagess it uses are of import for employees. If you are utilizing type of wagess to which is non of import for employee, it will non hold affect. Employee will go defeated and it may besides diminish the public presentation of employee. Monetary awards are non effectual all the clip, no uncertainty, money holds so much importance but sometime employees need something else so the money. So, different types of public presentation assessment system should be checked for their effectivity for different employees.

Performance assessments should non be used as replacements for consistent, unfastened communicating. Harmonizing to Carter McNamara of Authenticity Consulting LLC, “ Nothing should be surprising to the employee during the appraisal meeting. Any public presentation issues should hold been addressed every bit shortly as those issues occurred. “ A

Measuring the public presentation is non stop at all. It ‘s of import to look into the employee public presentation after honoring them. Sometimes they may go lazy and do non demo consistence in their public presentation. In this state of affairs effectivity of wages should be checked. A wages that brings consistent public presentation is perfect to be used.

Experts recommend that public presentation assessment meeting should be started to by doing it clear that end of assessment system is to interchange thoughts and work together to come up with an action program that can be effectual for accomplishing employees and organisational ends.

Strategic advantages of public presentation assessments:


Performance assessment system helps to aline public presentation of employees with organisation ‘s mission and vision. Evaluation procedure should associate to how the occupation of employee benefits the organisation and how efficaciously occupation is being performed by employee. This procedure requires careful analysis and reappraisal of occupation description so that responsibilities and duties of a given occupation to its related section and finally with organisational aims.

Optimized public presentation:

Appraisal system should actuate employees to execute better. For case, when trough evaluates the public presentation of employee and finds good performing artists, through rating procedure, it helps him to give that employee more ambitious undertaking following clip. For such employees, director can put criterions of outlooks and to discourse with employee every bit good about the ways that can be effectual in order to accomplish ends and aims.

Sequence Planning:

Evaluation of employee public presentation helps organisation in sequence planning. Through this procedure, direction will cognize about cardinal acting, talented and qualified employees and it will be easy for them to make up one’s mind about what cardinal place should be given to whom, when people keeping these stations leave or retired.

With strategic and well-planned ratings, company leaders can discourse the potency they see in an employee and secret plan a class to acquire the accomplishments and experience necessary to work into the identified function.

Potential signifiers of prejudice within the assessment system:

Performance assessment system faces some common prejudices named below:

Horns and Halos Effect:

It refers to phenomenon that a director assumes about peculiar employee that he is of course good or bad at his occupation. This is based on personal clangs or other factors that do non associate with occupation public presentation precisely. Manager keeps on looking employee with this position that has been built in this scene. This point effects public presentation assessment system.

Self Bias:

This happens when employee suffers from self-fulfilling prognostication. This refers to phenomenon that when public presentation assessment indicates that an employee is executing good, he/she will go on to execute good. And if public presentation assessment system indicated hapless public presentation of any employee, he/she will get down will go on to execute ill. Employees set their public presentation harmonizing to public presentation reappraisals.

Appraisal Bias:

Appraisal, itself can be a prejudice, as in many companies, merely one type assessment is used for all places in organisation. This assessment may non be effectual for peculiar station of employees.


Performance assessment system can be really helpful if it is implemented efficaciously and carefully. It ‘s an effectual manner to maintain employees motivated and develop a spirit of better their public presentation and concentrate on their strengths. An effectual public presentation assessment system motivates employees to put ends for themselves to increase their public presentation degree.

Appraisal system work efficaciously if it is good implemented, free from possible prejudices and serves as an effectual tool to aline employee attempts with company vision and mission and aid to accomplish organisational aims and ends.


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