Question

In 1 or 2 paragraphs Discussed the importance of performance evaluation to organizations. Critical to that is they do the evaluations and appraisal well.

Answer 1

Performance evaluations are important for organisations as well as the employee. They are tools of communication through which organizations can provide feedback on employee’s tasks, highlight aspects indicating quality performance and set clear expectations with respect to the future. Performance evaluations also provide an opportunity to discuss in which areas an employee’s performance is lacking and how it can be improved. Thus, even if they are not complex but are conducted regularly, it would help the organization to make optimal use of its employee’s skills and avoid any serious issues. Furthermore, performance appraisal is a more systematic performance evaluation process in which the employee’s performance is documented. It is useful for the organisation as it helps in the process of determining compensation, performance improvement, promotions, termination, test validation, etc.