Performance appraisals systematically evaluate employee performance to understand abilities and potential for growth. Advantages include promotions for efficient workers, compensation packages, developing training programs, validating selection procedures, improving communication, and motivating employees. Limitations are that raters can form impressions based on some characteristics, rate based on a single quality or with excessive strictness or lenience, see all employees as average, let personal biases influence ratings, let past performance influence present ratings, and let recent behavior influence ratings more than past performance.

1. PERFORMANCE APPRAISAL
ADVANTAGES AND LIMITATIONS

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 .

4. THANK YOU!!!