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Performance appraisal revokes around the systematic evaluation of employees with respect to their performance on their jobs, and their potential for development. In this process there is the measurement of productivity in terms of efficiency and effectiveness (Bicudo de Castro, 2017). It evaluates the contribution of each employee to the accomplishment of company’s goals. This, it serves both administrative functions, whereby it helps in guiding of the decisions to be made regarding employment actions, training and development.

    Conventionally, the purpose of a performance appraisal aids in evaluation. It guides the evaluation process on how well the employees conduct their duties. This includes their performance, the amount of effort they put into their work, and the various achievements the employees have received over the time they have been working (Bicudo de Castro, 2017). Singularly, the evaluation helps in setting apart employees on the basis of other factors eh behaviour and personality. In terms of salaries and rewards, performance appraisal helps the supervisors to know the job performance of their employees and the right amount to pay them. The employees receive their salaries and wages as per the contributions they have made to the organisations. The hard-working employees with impressive performances tend to receive high awards from the organisation. Altogether, it helps to determine training needs in the organisational structure. This it ends up on setting the necessary steps to be taken to help the employees to improve their performance (Bicudo de Castro, 2017). This increment in skills and knowledge develop an overall performance, attitude and behaviour therein.

Reference

Bicudo de Castro, V. (2017). "Unpacking the notion of subjectivity: Performance evaluation and supervisor discretion". The British Accounting Review. 49 (6): 532–544. doi:10.1016/j.bar.2017.08.003. ISSN 0890-8389

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