In: Accounting
Performance appraisal is the process of assessing th performance of the employees in terms of efficiency, effectiveness, quality of work ,production volume etc. It is important to assess the performance of the employees so as to improve the quality of work and also to know the deficiency and problems with employees and also to assess the training requirements. It has also direct connection with the overall goals of the organisation. It provides adequate feedback to the employees on their work which will ultimately improve their performance . Also positive appraisal motivates the employees. All this improves the efficiency of the employees. It changes and modifies the behaviour towards more effective working habits. It helps the managers to know which job has to be assigned to which person by judging their abilities and capabilities. Thus it has a positive contribution towards achivement of organisational goals. It helps in identifying the deficiencies and fixing them . It helps in identifying whether work and product standards are maintained or not. Also the employees become alert and improve themselves. Good appraisal fills the employees with enthusiasm towards work and boosts their confidence. And we all know that good employees are the most expensive and essential assets for any organisation.