How does performance appraisal help in taking different types of management decisions?
(4 marks) Ans. 19 Role of performance appraisal in management decision-making : (a) Compensation-helps in wages and salary administration and considering pay increases and increments. (b) Considering employees for promotion, transfer, lay off and the likes. (c) Employee development – Evaluation of skill and training capability of employees and planning suitable training and development programmes. (d) Provides a basis for comparison between persons to segregate efficient and inefficient employees. (e) Helps supervisors to know their subordinates more closely for increasing their efficiency. (f) It guides and helps the employees in their self improvement. (g) Motivation (h) Selection validation-to help evaluate selection method to ensure that individuals have been well matched with the job requirement. (1×4=4) (Any four) Q 20 Which method of wage payment-time rate or piece rate-would you prefer in the following situations? (a) When workers have no control over the rate of output? (b) Wh
