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Purpose of Performance Reviews

Purpose of Performance Reviews

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Published by: Shibly on Jan 11, 2012
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Purpose of Performance Reviews

Provides an opportunity to:
y y y y y y y y y

Translate Department/center's mission into specific achievable goals Manage performance rather than react to it Reduce overlap of job duties and ineffective, inefficient use of employee skills Provide written acknowledgment of completed work Gain new information and ideas from staff Discuss skill and career development Protect organization from unfounded charges of discrimination Reduce stress for the supervisor -- managing rather than reacting Reduce stress for the employee -- what is expected is made clear

Purpose Of Performance Appraisal

Appraisals Home » Purpose Of Performance Appraisal

Performance Appraisal is being practiced in 90% of the organisations worldwide. Self-appraisal and potential appraisal also form a part of the performance appraisal processes. Typically, Performance Appraisal is aimed at: y To review the performance of the employees over a given period of time. y To judge the gap between the actual and the desired performance. y To help the management in exercising organizational control. y To diagnose the training and development needs of the future.


Provide information to assist in the HR decisions like promotions, transfers etc.


Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.


To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.


To reduce the grievance of the employees.


Helps to strengthen the relationship and communication between superior subordinates and management employees.

According to a recent survey, the percentage of organisations (out of the total organisations surveyed i.e. 50) using performance appraisal for the various purposes are as shown in the diagram below:

The most significant reasons of using Performance appraisal are:

Making payroll and compensation decisions 80%


Training and development needs 71%



Deciding future goals and course of action 42%


Promotions, demotions and transfers 49%


Other purposes 6% (including job analysis and providing superior support, assistance and counseling)


dentifying the gaps in desired and actual performance and its cause 76%

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