Why are performance appraisals important?
The performance appraisal process serves a number of important functions. Some of the uses of performance appraisals include the following: • Motivation tool. Performance appraisals give you the opportunity to review work-related behavior with employees, reinforce what employees do correctly, and develop a plan for correcting any deficiencies. • Promotion and pay justification. Documenting the definition of each job and the appraisal of employees’ performance provide you with written justification for salary, merit pay, and promotion decisions. You’ll find it’s far easier to objectively make such decisions when comparing job definitions with appraisal results. • HR decision justification. You can use performance appraisals to support HR decisions involving termination, layoffs, and other personnel actions. • Career development tool. The performance appraisal is a central component of career planning programs. Performance appraisals allow you and your employees to review employees’ care
