Performance Management Systems and Strategies

IMPORTANCE OF PERFORMANCE APPRAISAL

The above purposes also define the importance of performance appraisal. The primary importance of performance appraisal is to reinforce important people-related decisions such as promotion and transfer, training and development, compensation and reward, human resource planning, organizational development, etc. We have already discussed about these in the preceding text. However, the degree of importance varies between organizations. For example, continuous employee development may be the priority for one organization, while taking important human resource management decisions may be the priority for another. Apart from the primary importance listed above, performance appraisal also motivates, communicates, ...