2. PERFORMANCE APPRAISAL -
Performance Appraisal is the systematic evaluation of the
performance of employees and to understand the abilities of a person
for further growth and development.
Advantages :
Promotion: For efficient workers.
Compensation: packages which includes bonus, high salary, etc.
Employees Development: the supervisors to frame training
policies and programmes.
Selection validation: The supervisors to understand the validity
and importance of the selection procedure.
communication: For an organization, effective communication
between employees and employers is very important.
Motivation:
Performance appraisals provide employees with recognition for
their work efforts and so motivates them to work efficiently.
3. LIMITATIONS:
First Impression: Rater’s form an overall impression about
the employee on the basis of some particular
characteristics.
Halo Effect: The individual’s performance is completely
appraised on the basis of a perceived positive quality,
features identified by them.
Excessive Stiffness or Lenience: Employees may be rated
very strictly or leniently.
Central Tendency: Appraisers rate all employees as
average performers.
Personal Biases: The way a supervisor feels about each of
the individuals working under him - whether he likes or
dislikes them.
Spillover Effect: The present performance is evaluated
much on the basis of past performance.
Recency Effect: Rating isinfluenced by the most recent
behaviour .