5 Reasons Why You Need to Conduct A Performance Appraisal Program

by abdul waheed

Last Updated on March 27, 2024 by Faisal Khan

Employee reviews are important for measuring performance and giving rewards. When done right, they let you evaluate your staff based on different performance metrics and help you figure out who the high achievers are. Employees can learn about their strengths and weaknesses, change bad habits, and reach their full potential with the help of the performance review. On the other hand, managers can use this evaluation system to compare their employees’ performance to the goals they’ve set and address problems with performance.

How a performance appraisal is set up affects how well it works. If done right, it can be a useful way to decide who to hire and promote. Think of it as a chance to look at the organization’s training and development programmes, recognize the best workers, and find ways to improve things.

Organizations may also use appraisals to handle changing roles, point out problem areas, and find new ways to use an employee’s strengths. Harvard Business Review says that the problem is that many companies find it hard to find a system that can help them reach these goals. During the performance appraisal, there is often bias and inconsistency, which makes employees angry.

1.    Performance Appraisal might make it easier to talk to people.

You can learn a lot about your employees through the performance appraisal. The key is to talk to your employees openly before, during, and after the review. Forbes says that less than a third of workers always know how they are doing at work.

Set clear goals for your staff and let them know what they are doing throughout the year. Someone on your team might want a raise, but that person’s work isn’t up to par. Tell him ahead of time so that he can work on getting better results. If workers think everything is fine, they won’t be able to fix a problem. This situation can make people angry, frustrated, and less productive and bring down morale.

Performance appraisal can help you and your team work together better. They not only make things less uncertain but also let you set strategic goals for your staff and deal with behavior problems early on. Also, employees have the chance to talk about their problems and needs for training and growth. They also learn what is expected of them and how their performance is judged.

2.    Reward people who do well.

Performance appraisal aims to find out what employees do well and what they could do better. Managers can use this information to determine who has helped the company grow and reward those who have done the best. So, employee evaluations could be the basis for merit-based pay plans that show your best employees how much you value them.

Again, everything comes down to how the evaluation is done. The quality of the results can be hurt by common mistakes, like doing the appraisal without setting goals that can be measured. Managers may have an unconscious bias against employees based on things that have nothing to do with their performance. That’s why getting information from many different places is important and ensuring everyone knows what to expect from their role.

During the performance appraisal, you should make sure to look at data from the past. The American Management Association says that managers shouldn’t let one very good or very bad rating change how they are judged. For example, someone who just lost a close friend or family member might be unable to do her best. As a manager, you should look at how she has done in the past before making a decision.

3.    Help people get better at their jobs

Performance appraisal can show where there is room for improvement and help managers figure out what training their employees need, which makes the organization more productive. They also help you spot people who might be good at something and tell you when team members are ready to take on more responsibility. Also, companies that invest in their employees’ growth find it easier to find and keep good workers.

Oklahoma State University says that more and more companies use evaluations without ratings and get feedback about their employees from many different sources. The traditional evaluating method is replaced by less formal meetings that happen more often. This method seems to be better at helping people improve their skills and abilities.

The Society for Human Resource Management suggests that employees’ performance be measured against their goals and that they be coached regularly. Also, everyone on your team should be able to use the tools they need to do their jobs well. With the information from performance appraisal, you can plan a career path for your staff and use training resources best. best audiobook service experts can brief you throughout the performance appraisal process.

4.    Raise the morale and motivation of your staff.

Even though most employees hate appraisals, they can be a good way to get them to work harder. Bonuses, promotions, training programmes, and other performance appraisal results based on merit may boost a team’s morale. Praising your team members for what they’ve done well is just as important. Encourage your employees to improve and give them specific ways to do so. Focus on what’s going well and show your team how to build on that.

Be careful about the words you use. Forbes says that performance appraisal can cause good workers to lose their drive. These people are always trying to get better at what they do and get better at what they do. You could say something like, “You’re doing a fine job. The work you do is great, “and you might never see them again.

Focus on giving constructive feedback, no matter how well an employee did. You should tell the people on your team who do the best work to look for new goals and challenges. Ask your employees to do self-evaluations to find out where they think they stand and what they want to change. Use this information to help them reach their full potential by regularly giving them feedback and training.

5.    Find out what training your team needs.

People on your team will each have their strengths. Use the review to find out where your employees are weak and where they might need more training and help.

Letting your team know that you care about their growth will help them have a more ambitious mindset, which will help the business be more productive and driven.


Appraisals can be very helpful to your team’s success if they are done right and often. Once a year is not enough to get a good idea of how well your employees are doing and how happy they are with their jobs. Think about all the good things we’ve talked about so far, and then take steps to make sure the success keeps coming by talking to your team more often in a formal setting.

You may also like