Discuss the reasons why management carries out performance appraisal. - Leaving Cert Business - Question 6C - 2007
Question 6C
Discuss the reasons why management carries out performance appraisal.
Worked Solution & Example Answer:Discuss the reasons why management carries out performance appraisal. - Leaving Cert Business - Question 6C - 2007
Step 1
To review the progress of employees in order to determine the appropriate reward.
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Performance appraisals allow management to assess employee progress over time. By reviewing their performance, managers can determine suitable rewards or promotions based on achieved goals.
Step 2
Goals can be set for future performance and these targets can be agreed by employees.
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Setting clear goals during performance appraisals helps both the management and employees to have a shared understanding of future expectations, enhancing employee engagement and responsibility.
Step 3
To decide on suitable wages for employees or discuss the possibility of a pay rise.
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Performance appraisals provide a basis for salary discussions, allowing management to consider adjustments in wages based on performance metrics and contributions.
Step 4
To provide employees with feedback so their productivity can increase.
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Constructive feedback during performance appraisals can help employees identify areas for improvement, ultimately leading to increased productivity and job satisfaction.
Step 5
To improve staff motivation by recognising staff achievements and giving appropriate award.
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Recognising and rewarding achievements is vital for employee morale. Performance appraisals serve as an opportunity to acknowledge individual contributions, enhancing motivation.
Step 6
To assess employee’s potential for promotion or a bonus or extension of a contract.
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Management can evaluate an employee's readiness for promotion during appraisals, thereby making informed decisions on career progression or contract renewals.
Step 7
Management obtain feedback from employees on what resources they require/training, retraining needs or additional supports.
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Performance appraisals include discussions on employee needs for resources and training, ensuring that they have the necessary support to excel in their roles.
Step 8
To measure employee output against a standard.
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Appraisals provide a formal mechanism to evaluate employee performance against established standards, ensuring accountability and clarity within the organization.
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