Performance appraisal is the direct evaluation of the performance of the employees. Most of the organizations carry out their performance appraisal annually where the agreed expectations and goals set are monitored and the level of achievement analyzed (Grote, 2010). A well structured performance appraisal system enhances focus and acts as a motivating factor to the employees due to promotion. This helps improve the output of the employees hence the sucsses of the organization.
Practicing performance has a benefit to the employees as it recognizes and rewards the best performing workers by promotion in the job rank. This helps keep the employees focused in the achievement of the set objectives. The system can also be used by the managers to identify the capability of each employee in relation to the expected output. It is also an effective method for managers to ensure the full utilization of the human resource factor which is labor. According to Bethel (2002), a well structured performance system is a vital tool in enhancing open communication between the different departments in an organization. Through this, the employees feel as part of the organization which enhances their productivity.
Different scholars have showed opposing views on performance appraisal being practiced in many firms. One of the weaknesses noted with the system is that the manager may not be able to judge the performance of individual employee fairly. This is because the employees have different capabilities and skilled differently (Stewart, 2008). The performance appraisal is not an effective tool to measure the capability of the employees as some perform well in the aim of being promoted. This will give a wrong picture to the managers or the employee supervisors.
The mangers are encouraged to engage their workers in the review on the results got after a performance appraisal activity is done. Through this the employees will be able to identify the areas they need to improve in order to achieve in their set objectives. This will also keep the employees focused in their daily activities as they try to outdo each other in the aim of getting the rewards like job promotion. The other way to upgrade the performance appraisal is by comparing the performance of each employee with his or her capabilities and skills. This will ensure that the managers do not give the wrong judgment in the performance of the employees as some may be faster in doing their tasks than others. Each employee should be evaluated differently in regard to the set objectives (Grote, 2010).
In conclusion, the evaluation done on the performance of the employee has been an effective tool to the managers in running the firms. Performance appraisal is vital for managers in checking and motivating their best performing employees. The practice should be encouraged for the improvement in the output in the organizations.