Question

“Staff appraisal has limitations. Yet it is in the interest of both employer and employees.” Explain.

Answer 1

• Staff appraisal, though not a perfect system, plays a vital role in improving organisational performance. It does have limitations such as subjectivity, personal bias, lack of proper tools, and occasional demotivation of employees if not handled properly. However, despite these drawbacks, it benefits both employers and employees.
• For employers, it helps in identifying high performers, planning promotions, training needs, and improving productivity. For employees, it offers constructive feedback, motivation, recognition, and a clear understanding of their strengths and areas for improvement.
•  It also helps in career growth and setting future goals. Therefore, even with its limitations, staff appraisal remains an essential tool for mutual development and progress within the organisation.