Describe the use of performance appraisal.

Performance appraisals are essential for the effective management and evaluation of staff. Appraisals help develop individuals, improve organizational performance, and feed into business planning. Formal performance appraisals are generally conducted annually for all staff in the organization. Each staff member is appraised by their line manager. Directors are appraised by the CEO, who is appraised by the chairman or company owners, depending on the size and structure of the organization.

Annual performance appraisals enable management and monitoring of standards, agreeing expectations and objectives, and delegation of responsibilities and tasks. Staff performance appraisals also establish individual training needs and enable organizational training needs analysis and planning.

Performance appraisals also typically feed into organizational annual pay and grading reviews, which commonly also coincides with the business planning for the next trading year.

Performance appraisals generally review each individual's performance against objectives and standards for the trading year, agreed at the previous appraisal meeting.

Performance appraisals are also essential for career and succession planning - for individuals, crucial jobs, and for the organization as a whole.

Performance appraisals are important for staff motivation, attitude and behaviour development, communicating and aligning individual and organizational aims, and fostering positive relationships between management and staff.

Performance appraisals provide a formal, recorded, regular review of an individual's performance, and a plan for future development.

Job performance appraisals - in whatever form they take - are therefore vital for managing the performance of people and organizations.

Managers and appraisees commonly dislike appraisals and try to avoid them. To these people the appraisal is daunting and time-consuming. The process is seen as a difficult administrative chore and emotionally challenging. The annual appraisal is maybe the only time since last year that the two people have sat down together for a meaningful one-to-one discussion. No wonder then that appraisals are stressful - which then defeats the whole purpose.

agreed with mr.krishna............

In my organization, we use360 degree performance management system. Performance appraisal process:

1. Self assessment.

2. Performance evaluation Meeting between supervisor and supervisee.

3. Peer or colleagues feedback to supervisor by03 staff.

4. Give performance feedback about supervisor to supervisor boss.

Performance appraisal is crucial tool in the hands of the management to bring about greater agility and responsiveness in human resources of an organization. Performance appraisal is the foundation of much human resource decision.

 Use of Performance Appraisals

1. Promotions

2. Confirmations

3. Training and Development

4. Compensation reviews

5. Competency building

6. mprove communication

7. Evaluation of HR Programs

8. Feedback & Grievances

Agreed to Mr. Vrindavan 

I believe performance appraisals paint a picture of how and were your growth is going direction wise ,it is an important tool to evaluate the progress and growth of your staff to meet company's vision,objectives and mission statement.