Explain the process of appraising and evaluating employees' performance.

What will be an ideal response?


If the employees' actual output cannot be measured, the employer needs an effective system of performance appraisal (also called employee evaluation or merit rating) to help him or her answer the question "How well are my people performing?" Under such a system, each employee's performance and progress are evaluated, and rewards are given for above-average performance. Appraisals should be based on the employee's job description. One cannot measure performance unless one has requirements. Often, this technique is used in determining merit salary increases, special merit raises, training decisions, layoffs, or promotions or transfers. Appraisals can also be used for disciplinary actions such as reprimands, suspensions, demotions, or discharges.
Employee evaluations should be related to promotions and salary increases in addition to identifying marginal workers and designing training activities for them. They can also be used to motivate employees, if the evaluations are adequately translated into rewards.
Performance appraisals are based on the assumption that employees have (1) personal abilities and qualities that lead to (2) job behaviors that (3) result in work performance that (4) can be identified and measured. Therefore one needs to (1) determine which personal qualities an employee has that result in (2) his or her behaving in a certain way on the job that (3) results in a certain level or quality of work being performed. One must evaluate, measure, or rate work performance in order to take some type of human resource management action involving that worker. Although employee appraisals themselves are important, it is the feedback from them that really leads to improved performance.

Business

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