Performance appraisal is the systematic assessment of employees’ performances in an organization. It includes evaluating abilities and performance of employees over a period of time for their further growth and development. Performance appraisal is done in every organization with the following objectives in mind:
To keep record of compensation packages, wage structure and salaries raises, etc.
To identify the weaknesses and strengths of employees in the organization.
To determine how actively the workforce is working.
To assess current performance of employees for further growth.
To provide feedback to employees regarding their performance.
To influence working habits of employees.
To encourage employees for improvement.
To fit the right person on the right job.
In most organizations, HR managers are solely responsible for analyzing the performance measures and conducting the appraisal. Constant performance monitoring enables HR professionals to evaluate work efficiency of employees. To ease the entire appraisal process, HR managers use performance management system software. The system plays a vital role in reviewing and managing the overall performance of employees and the organization. The performance management system provides accurate periodic information about employees over time. Accuracy and reliability are two main attributes of these systems. The system can also help compare the employees’ current performance with the past. So, it could be an important tool to analyze performance measures.
