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Purpose of Performance Appraisals A performance appraisal can be defined as a structured formal interaction between a subordinate and supervisor that usually takes the form of a periodic interview annual or semi-annual in which the work performance of the subordinate is examined and discussed with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development As methods of measuring performance are imperative in assessing a companys success or failure performance appraisals are necessary in assessing the employee base that is responsible for the companys overall performance Historically the primary participants in a performance appraisal are the supervisor and the subordinate However as performance appraisal methods have continued to evolve the evaluators have grown to include a greater range of participants from peers to customers In addition to an expansion in the participant base the function of performance appraisals has also grown to encompass various purposes A popular reasoning behind performance appraisals surrounds the human resources component of justifying promotions raises and terminations A performance appraisal provides a formal means for the employer in determining whether or not an employee has the necessary qualifications for either a promotion andor raise Performance appraisals can also focus on an employees development as the primary objective While utilizing performance appraisals as a career development tool for the employee a company is able to improve communication and strengthen their employeremployee relationship Providing performance feedback to an employee allows both the employer and employee to determine any training and development needs in order to support an employees career growth An employers interest in their employees career development can contribute to an employees morale and loyalty to the organization Utilizing performance appraisals as a development tool also helps stimulate communication between the employer and employee It allows for the opportunity for all participants to share opinions and ideas particularly related to goal setting and relationship building The purpose of performance appraisals can also be used to
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