Employee performance appraisal is conducted after the specific duration for each employee. In performance appraisal employees have to be monitored and evaluated periodically by HR department. On the basis of performance appraisal management can suggest some tips for improvement in their skills. They can plan for on the job training to improve employee’s skills. When they are monitored and know that their performance will be appraised, they will put their best efforts to do better job.
Employee performance reviews are an internal motivation and management tool for employees. If they will not perform well consistently, they will be fired. Well performing employee will get promotion or increment in salary. These appraisals are necessary to improve their communication, motivate them to perform better and improve their performance.
For performance appraisal management has to appoint a well qualified and experienced person, who is good enough to do appraisals. He should be a good motivator and be able to take hard decision if the employee is being costly to the business and can fire him.
Appraisals have to be valid, related to job and must be done after analyzing the job carefully. Performance appraisal should be unbiased against sex, color, community, religion etc. Performance appraisal have to include the name of the employee, designation, job description, date of appraisal, criteria, suggestions to improve their performance and signature of employee and HR Manager or reviewer.
Performance appraisals have to be conducted periodically; employee should familiar with the way the performance appraisal is to be conducted. These appraisals should be fair, improve relationship among the employee and not have a negative impact a good employee. They have to suggest to the employee as well as employer get a clear idea about their performance and effect improvements by good suggestions from the HR manager. Thus, employee performance appraisal is very important for business to get maximum performance from employees.