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Why Performance Appraisal is Important in an Organisation?


It is common for any child or a human being to expect praise or appreciation for the kind of work he or she has done. If that is not received, then it may create problems.

It is just like a 5-year-old baby expecting a candy for doing a good home-work or doing some works that is better than the others. Here we have discussed the important or performance appraisal for employees ability, knowledge, skill and overall job performance.

why performance appraisal is importantThe world runs on the basis of inequality. There is no single, linear system which can work well to give effective output or advice to one and all at an equal level. Thus, the performance management system or performance appraisal types come into the picture.

Why Performance Appraisal is Important?

There are many important aspects of performance appraisal. Imagine you are in an organization and you have outperformed yourself at all levels, you would want to hear that praise, that accolade for yourself.

You have stayed days and nights working on the project which has been different in its output than others. You will become the person who will go and demand for a better chance at earning some better output of money or even respect.

Thus, there are many factors which come behind this role of having to expect and get an equal amount of money for whatever has been done till now. It is rare but it is very much needed.

It is thus necessary to understand how can an employer or the person in the senior position to credit you or Appreciate the work you have done. Here are some ways:-

Importance of Performance Appraisal in an Organization:

a) Appreciating in person:

The boss can simply call the employee in the office and offer praise to him or her. By offering that praise, you will have made sure you have reached the zenith of work or output level.

The person will exactly remember when and where he managed to deserve and receive praise from his boss. Thus he will try to work to that level always.

b) Calling for a meet and praising:

This can be yet another way of offering praise to your favorite employee. It is not easy to please your boss always but when you do, it is meant to be celebrated.

Thus when the boss has acknowledged your efforts, it must be his or her responsibility to call you in person and praise you for all that you have done or are doing.

This makes sure that you receive the accolade for exactly everything you have done. It is the most awesome way to do it.

c) Treating your bunch for lunch:

Yes, if you know that it is not a single person’s job but an entire bench who has done very well at what they have done. They deserve a good treat for themselves.

It is the best and the exact way of remembering what your employees have done for the organization.

As a responsible and honest boss, such a small thing will only alleviate your position and you would be definitely liked more.

d) Giving perks:

Everything today is judged but the value of money. When you give money or offer an extra amount of salary or services to your employees, they will be happy and motivated to work better.


There are regular ten employees who wait back every day to finish the unchecked work of others, for them you can start services to drop them till home?

Suppose you have three expecting women in your office and they need to work because they cannot take a leave, you can alter their timings of work and may grant leave on the rest of her delivery months.

Personal touch will make you different than a normal bossy boss“.

e) Incentives:

Bonuses in salaries are the happiest ways at work which allows you to impress your employees. Annual appraisal or hikes, extra income or maybe introducing travel insurance are such good and stable ways to make you go ahead in life.

This is the best way through which you can see yourself going up and with that your company will also grow.

f) Weekend off:

This may be the most indirect way through which you show your appreciation towards your team, but this is one of the valid methods. Show that you love your team the most and give them such weekend offs.

Show them you love them the most and trust them with all your hearts. You are the right person to do this and there is no one except you who can do such a job. You are the best and the greatest person when it comes to all this.

Thus, being a lovable boss can also work in getting better output from your fellow employees.

g) Holiday packages:

Suppose imagine if you are in a company and you have been contributing to your optimum level for years to come. Now your boss suddenly recognizes the amount of talent and efforts you have toiled in and gives you a holiday package.

Guess how much happy he or she will become to see that boss appreciating what you have really done. This will be the best gift you can give to that person.

It is the most amazing way of saying that yes, you are a part of our organization and you will be considered well.

h) ESOPs:

These are yet another way of saying thank you to your employer. He or she is going to be very happy with what you have done. Thus, by giving a credible amount of shares to your employee, that person will be so happy to have done something so lively and nice.

The shares that will be given will be the best way of having told your employer that you appreciate and accept whatever be the fruit.

ESOPS are a great tool in making your employee feel that he or she is a part of the organization and is no one different.

This increases the level of fondness and thus the employee will be excited and more rejuvenated to work better for your organization.

To Conclude, these are the points of understanding that how giving a personal touch or a helping hand to your employees can make them feel so differently about you.

Now it is to be analyzed why such different methods should be adopted at all in the beginning.

Why and in what way will the employee be affected after you offer or tend to show your kind of love to that person. It works at different levels. Let us find out.

Benefits of Performance Appraisal:

The following mentioned are a few important advantages of performance appraisal and tips on effective performance appraisals at work.

1. Boost up the morale:

An employee performance appraisal system is the best way of showing that you care for those who work for you. Thus it can boost up the morale of your employees.

Your employee will feel he or she is the happiest person on the planet earth to have done such a powerful thing for your organization. It makes him feel happy and full.

This could be the best way in which you can make the employee work better, without repeating the same mistakes he or she could have performed.

2. Alleviate the person if he is shy or coy:

Imagine the amount of good you do to that person when you say that he or she is better than the others. This person has always seen as the silent one of the group. He or she has never mustered the courage to come and talk to the boss.

Suddenly he or she becomes the riding high in an organization. He or she becomes the ultimate guru you love and you want to ride on.

3. Help them to overcome their intimidation:

Imagine you have asked three best management guys to come and present their proposal to you on a Monday. They are there but then they are not exactly sure whether you will like it.

Out of the three, the other two speak really well but the third one does not show such a flamboyant show of words.

Instead, he brings out some very good and effective points for the proposal. You will stand up and praise this employee who has managed to be a breath of fresh air in your organization.

The other two will know that they would have to work better in the content side than just focus on flowering it up. Thus, you have laid the line and you will be able to get some really good work then.

This entrepreneurship is all about how you rule and manage the lives of others. When the word controlling hits your head you should know that you have already had a flop show.

Even biggie slice Bill Gates, Zuckerberg, Elon Musk and Amazon work towards the aim that they will be able to satisfy their one and only people who toil day and night so that their organization reaches the zenith.

In such times, you are going to show attitude or you will show that you do not care what happened, you have already lost it. Thus, this is the basic aim.

Conclusion :

The performance appraisal process is not only important but it’s needed. It is needed to show that your organization is better than the others, and your employees are happier and more satisfied.