Why is it important to have an appraisal?

Introduction
Performance appraisal is a necessary function in Human resource management. It
is a systematic assessment of an individual with respect to his or her performance
on the job and his or her potential for development in that job.
Performance appraisal is expected to result in an assessment of:
 Development potential of employees
 Training needs for the employees
 Capabilities of employees being placed in higher posts.
 Behaviour and obedience of employees.
 Need of the organisation to evolve a control mechanism.

Performance Appraisal
Performance appraisal is a formal assessment and rating of individuals by their
managers usually at an annual review meeting. It involves evaluating the
performance, quality and quantity of output, leadership abilities etc.
The objectives of performance appraisal are:
 Salary Increase
 Promotion
 Training and development
 Feedback
 Pressure on Employees

Methods of performance appraisal are:

There are basically 2 classifications of methods for performance appraisals.
Traditional methods and Modern methods
The traditional methods are
 Ranking method
  Paired comparison
 Grading method
 Forced distribution method
 Forced choice method
 Checklist method
 Critical incidents method
 Graphic scale method
 Essay method
 Field review method
The modern methods are
 Management by Objectives (MBO)
 Behaviourally anchored rating scales
 Assessment centresin the beginning
 360-degree appraisal
 Cost accounting method

The main steps in the process of performance appraisals are:

1. Establish performance standards
2. Communicating the standards set to the employees
3. Measuring of the actual Performance
4. Comparing actual performance with the standards set
5. Discussion with the concerned employee
6. Initiate corrective action

Appraisals are important because, performance appraisals are used by companies

to know more about their workforce. These evaluations enable managers to learn
about each employee's skills and limitations so that they can best utilize them in
the workplace and improve their future performance. Companies can keep their
staff interested and encouraged to work more by conducting performance
appraisals on a routine basis.
Conclusion
In conclusion, Performance appraisals are essential for the growth of a company
and the employee. It helps the company to find out whether the employee is being
productive or is a liability. It helps the employee to find out where his / her career
is heading. It is an essential part of HR management. A performance approval need
not be a stressful event for the HR / supervisor or for the employee. This can be a
productive platform for the employee to express his / her work related issues and
sort it out and for the HR / Supervisor to motivate the employee to contribute
more.

References
https://www.kpi.com/en/10-benefits-of-the-performance-appraisal-system/

https://safetyculture.com/topics/how-to-conduct-an-effective-performance-appraisal/importance-of-
performance-appraisal/

https://chvmpionmind.com/importance-performance-appraisal/