The document discusses the various purposes of performance assessment in organizations. It identifies four main categories of purposes: 1) Administrative purposes like evaluating employee performance for promotions, transfers, pay raises, and termination decisions. It also helps with HR activities and succession planning. 2) Developmental purposes like helping employees and the organization improve performance on an ongoing basis. 3) Role definition purposes like clarifying employee roles and responsibilities. 4) Strategic purposes like ensuring employee and organizational activities align with achieving overall goals, and creating documentation for legal protection. The response identifies administrative purposes as the most crucial because the primary purpose of performance assessment is to inform administrative decisions regarding employees.

1. PCM
ASSIGNMENT 2
SUBMITTED BY:
ESHA ALI (FA19-BBA-068)
Q: Enlist purposes of performance assessment:
The purposes of performance assessment can be categorized into 4 major headings that include:
1. Administrative purposes:
 Employee Performance and Appraisal System:
Performance assessment assist with distinguishing strong and weak performer
employees and along these lines help with making administrative decisions about
employees regarding promotions, transfers, giving pay/ merit raises, bonuses, different
kinds of worker rewards/ appraisals, employee retention and termination. Therefor the

2. implementation of the reward system depends on the information collected by performance
assessment.
 Human Resource Activities and selection:
Performance assessment helps with human resource activities as well. It helps the HR
department and the organization with finding out about the qualities and shortcomings of its
employees, to know where which employees can perform best and where the majority
employees lack in terms of training and development so HR programs can be created based
on those gaps. Furthermore, it helps in assessing future training needs, selecting accurate
talent inventories and making correct appraisal decisions.
 Development ofPersonal System:
Managers can use performance feedbacks to mentor workers and further develop
performance on a continuous basis. One more part of development purpose is that employees
can get data about themselves that can assist them with their career paths and to develop
themselves further.
 Succession Planning:
It also helps with succession planning, who will replace who etc as succession planning
requires time and effort from both management and employees. Having your assessment
phase being completed it becomes easier for managers to know the correct knowledge, skills,
abilities and potential needed for a particular job.
 Employee Relation:
Performance assessment offers Employees a chance to really share and talk about the issues
that they are looking in their job. This forms a solid climate for both the managers and the
employees.
 Proactive Management:
It helps the management in making correct decisions about its workforce that are beneficial/
profitable for the organization in whole. Management becomes proactive and can easily
identify employees that work well and can be promoted and the problem areas.
 Organizational Climate:

3. Connecting with employees through performance assessment process can help in motivating
and encouraging employees to engage and perform better with its work as well as the
management. Establishing a better workplace climate that promote coordination and strong
relationships which therefore help in building a string organization.
2. DevelopmentalPurpose:
 Organizational and Individual
Performance assessment supports both organizational and personnel development. On
personal level employees can know better about themselves that can help them develop
themselves further and assist them with their career paths. On a broader scale management
can assess employee’s performance and develop it on an ongoing basis that will help in an
overall development of the organization.
3. Role Definition Purpose:
 allows employees to get to know where does he/she stands when contrasted with
others in the organization, and clearly understand the required roles,
responsibilities, skills, knowledge and abilities for the particular position.
4. Strategic Purposes:
 Organizational Goals:
In the end whatsoever activities are being conducted in an organization its main
purpose is that its employees and the organizational activities function in a manner
that helps in achieving the overall goals of the organization/ strategic planing. The
same does the assessment process it helps in clearly defining the performances of the
employees so they perform better and can achieve the organizational goals easily.
 Legal Issues:
Performance assessment recorded as a hard copy can assist you with laying out a
valid history of an employee’s concerns which can be significant in guarding yourself
against an employee’s later claims of unfair dismissal/ termination or discrimination.

4. Q2: Describe whichpurpose of the performance assessmentis crucial
the most and why?
In my opinion Administrative purpose hold the most importance as main purpose of
performance assessment and appraisal is to make administrative decisions including
decisions related to pay, salary, promotion, merit raise, bonuses, employee retention,
termination etc.