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Explain what is meant the term performance appraisal - Leaving Cert Business - Question 5(A) - 2010
Question 5(A)
Explain what is meant the term performance appraisal. Performance appraisal is reviewing the performance of the employees in business. It is usually carried out by ... show full transcript
Worked Solution & Example Answer:Explain what is meant the term performance appraisal - Leaving Cert Business - Question 5(A) - 2010
Step 1
Explain what is meant the term performance appraisal.
Answer
Performance appraisal is a systematic evaluation process where an employee's performance is assessed by the Human Resource Manager. It involves comparing the employee's work quality against established criteria to ascertain strengths and areas for improvement. Regular appraisals facilitate open dialogue between the employee and HR, helping set and clarify job expectations.
Step 2
Outline the benefits of performance appraisal for a business.
Answer
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Opportunity to review rewards: Performance appraisal helps in determining pay raises and promotions, assisting in the management of reward structures within the business.
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Increased productivity: Regular performance reviews enhance motivation and foster a positive relationship between employees and management, leading to improved productivity.
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Reduced overtime costs: By recognizing and addressing inefficiencies, businesses can minimize the need for overtime, which reduces overall costs.
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Retention of talent: Regular appraisals allow for the identification of employee strengths, facilitating career development and retention of skilled staff by addressing their professional growth needs.
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Industrial relations: Performance appraisals can improve workplace relationships when handled effectively, fostering a collaborative environment.
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Selection and training: Appraisals provide insights into training needs and assist in planning employee development, aligning skills with business goals.
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Planning: Accurate appraisals help outline future staffing needs and budget allocations, enabling better forecasting and resource management.