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Define Performance Appraisal. Briefly Explain the Pros and Cons of Staff Appraisal of Subordinates by Their Superiors. - Business Studies

Question

Answer in Brief

Define performance appraisal. Briefly explain the pros and cons of staff appraisal of subordinates by their superiors. 

Solution

Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development.

PROS:
They provide a document of employee performance over a specific period of time.

  • They provide a structure where a manager can meet and discuss performance with an employee.
  • They allow a manager the opportunity to provide the employee with feedback about their performance and discuss how well the employee goals were accomplished.
  • They provide a structured process for an employee to clarify expectations and discuss issues with their manager.
  • They provide a structure for thinking through and planning the upcoming year and developing employee goals.
  • They can motivate employees if supported by a good merit increase and compensation system.

CONS:

  • If not done right, they can create a negative experience.
  • Performance appraisals are very time consuming and can be overwhelming to managers with many employees.
  • They are based on human assessment and are subject to rater errors and biases.
  • It can be a waste of time if not done appropriately.
  • They can create a very stressful environment for everyone involved.
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