By-Ankit jaiswal

Roll no-06
 Performance Appraisal
 Performance appraisal is the systematic evaluation of
the performance of employees and to understand the
ability of a person for further growth and
development.
Competitive Advantage of
performance appraisal
 Improving performance: An effective appraisal system
can contribute to competitive advantage by improving
employee job performance in two ways by directing
employee behaviour towards organisational goals and
by monitoring that behaviour that the goals are met.
 Making correct decision: Appraisal is a critical input in
making decisions on such issues as pay
raise,promotion,transfer,training,discharges.Right
decision on each of these can contribute to
competitive strength of a firm.
 Ensuring legal compliance: Promotion made on
factors other than performance might land up a firm in
legal battle, thus diverting its focus on non productive
areas. Companies can minimise costly performance by
using appraisal systems that give fair and accurate
ratings.
 Minimising job dissatisfaction and turnover:
Employees tend to become emotional and frustated if
they perceive that the ratings they get are unfair and
inaccurate. Such employees find that the efforts they
had put in became futile and obviously get
demotivated. An organisation having satisfied and
motivated employees will hav e its age over its
competitors.
 Consistency between organisational strategy and
behaviour: An organisation needs a strategy consistent
with the behaviour of its employees if it were to realise
its goals. As employees want to be rewarded, they tend
to occupy themselves more with those activities on
which the organisation emphasises. Ex: If the focus is
on rewarding productivity, employees will strive for
productivity.
 Organisational strategy and performance appraisal:
The performance appraisal system serves many
organisation goals. Besides encouraging high level
performance, the evaluative system is useful in
identifying employees with potential,rewarding
performance equitably, and determining employees
needa for development.
These are all the activities that support the
organisation’s strategic orientation. Although these
activities are clearly instrumental in achieving
corporate plans and long term growth, typical
appraisal systems in most organisations have been
focused on short term goals.
THANK YOU