Data relating to performance assessment of employees are recorded, stored, stored and used for several purposes. The main purposes of employee assessment are:
To effect promotions based on competence and performance.
To confirm the services of probationary employees upon their completing the probationary period satisfactorily.
To assess the training and development needs of employees.
To decide upon a pay raise where (as in the unorganized sector) regular pay scales have not been fixed.
To let the employees let where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development.
To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate and improves understanding of personal goals and concerns. This can also have the effect of increasing the trust between the rater and the rate.
Finally, performance appraisal can be used to determine whether HR programmes such as selection, training and transfers have been effective.
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