Developing an Appraisal System

Developing a Performance Appraisal System

University of Phoenix at Axia

A company needs a performance appraisal system for many reasons. A suitable performance appraisal system gives the employees information about their completed performance, gives them feedback, gives the employee a list of places where they could use extra training, records the areas that an company decides to give rewards, chooses who should get a merit pay raise, a promotion, or be disciplined, and reports both how the company could improve and how they should accomplish this. Appraisals both tell an employee how they are doing and what level they perform at, but it also helps employees to talk to their managers about what they are doing and what they should change. Performance appraisals, also, ensure that an organization's Human Resource department is working in a way that that meets the Federal Equal Employment Opportunity rules (1987).

Every company needs to strive to improve itself consistently – appraisal systems help a company to meet this goal. Employees can use this feedback – a systematic description of their work and how to change and improve it – to take the opportunity to gain new skills and improve existing ones, helping themselves and improving the company as a whole. Many employees need a reward system in order to consistently create their best work, and the performance appraisal tells the administrators exactly which employees should receive a merit pay raise or be promoted. This possibility makes employees work harder, and they go the “extra mile” to improve their circumstances through rewards from the company.

In order to be effective, an appraisal system must also be well-planned. Management needs to be visibly involved so that the employees know they are supported throughout this process. Also, a company needs expectations for the appraisals. An appraisal system must take into account the employees who are being evaluated, the people...