Discuss the reasons why management carries out performance appraisal. - Leaving Cert Business - Question C - 2019

Appraisals offer a structured opportunity to set and agree on future goals and performance targets with employees. This collaborative process can enhance clarity about expectations and motivate employees to achieve set objectives.

Through appraisals, management can evaluate employee contributions and performance levels, thereby justifying discussions regarding wage adjustments or salary increases based on performance benchmarks.

Feedback is a critical component of performance appraisals. By providing constructive feedback, management helps employees identify areas for improvement, which can subsequently lead to enhanced productivity.

Recognizing and rewarding achievements during appraisals can significantly boost employee morale and motivation. When employees see that their successes are acknowledged, they are more likely to remain engaged and productive.

Performance appraisals serve as an important tool for evaluating employees' suitability for career advancement opportunities. Management can determine who may be ready for promotion or bonuses based on their performance relative to established criteria.

Appraisals create a dialogue where employees can express their training needs and support requirements. This feedback allows management to identify knowledge gaps and provide necessary training, optimizing effectiveness.

Finally, performance appraisals help to quantify and measure employee output against established standards or benchmarks. This process ensures that performance levels are aligned with organizational goals.