For an organization to be successful there is but one thing it definitely needs – employees. The valuable growth of a company lies in creating a balance between an employee’s expectations and the company’s expectations from the employee that it invested in. There are several ways in which employees can be kept motivated to work better – but how does a company evaluate whether an employee is delivering according to its expectations and requirements?
This is where performance appraisal and performance management comes into play.
When we think of the word ‘appraisal’, the first thing we think of is monetary compensation. However, the process is more than just about money – it’s about ways in which a company can manage employees to help them grow individually, and make the company grow with them. Performance appraisal is the need of the hour for organizations that have more than a handful of employees, because it is one of the best ways of keeping a tab on a company’s resources and their worth in taking the company forward. Performance appraisal systems help analyze an employee’s performance, thus evaluate how much of an asset they are in the company. It also helps analyze organizational development tactics – ones they might need to introduce, or cut off.
Here are a few reasons why performance appraisal and management systems are of utmost importance:
- It gives the company a chance to provide the employee feedback. Managing employees in a big organization is a huge responsibility, and one can’t always keep a tab on every employee’s hourly activities. This is why a good performance appraisal system is required. Through its analysis, the company can know the employee’s strengths, weaknesses, and how much they contribute to the company’s success. This feedback can help an employee improve.
- It helps them make decisions about promotions and layoffs. This system helps the company understand the genuine effort taken by an employee, hence making them worthy of a promotion/raise as compared to their other peers. It also helps a company understand if an employee is not living up to its expectations, thus leading to layoffs.
- It helps evaluate individual compensation. Once a company can monitor the work of each and every employee, it’s easier for to decide how much of a raise each can get. It also gives a company an insight into which employee is here for the long run, and which one needs to be carefully monitored.
- It helps understand where the company needs to develop more. Performance appraisal systems don’t benefit employees exclusively. A company runs because of the individuals who work there, and recording their performance is a direct indicator of their environment. Hence, noticing changes in employees’ behavior towards work can lead an insight into where the management can improve. Once that is taken care of, the employees’ productivity will change for the better.
- It helps make the vision of the company clearer. After evaluating the worth of its employees, a company has a few decisions to make – who deserves a good appraisal, who deserves a promotion, who needs to be counseled, and what other reforms need to be made from the company’s side to make the employees more comfortable and productive. Analyzing data gives the company a clear insight into what they will and will not need in the near and distant future. This, over time, helps organizations grow.
We at Cerveausys take pride in being consultants for performance appraisal and performance management systems in Pune. With our expertise as highly qualified consultants and brilliant HR and OD solution tailored according to your needs, we help your company grow and move forward. Get in touch with us to know more.