This paper examines the value of human resource performance appraisals from both the employee's and the organization's perspectives. It discusses how negative appraisals can guide employees toward improvement, while positive reviews reinforce valued behaviors. From the organizational side, the paper addresses how appraisals help identify strong contributors, promote institutional self-reflection, provide legal documentation for employment decisions, and generate feedback on factors that drive optimal or sub-optimal performance. The paper argues that performance appraisals serve multiple overlapping functions beyond simple evaluation.
From an employee's perspective, even a negative performance appraisal has its valuable side. It can let the employee know that his or her performance is lacking in key areas, and the employee can then seek to address these deficiencies so that his or her job will not be in jeopardy in the future. Even if the employee feels that a review is unfair, there are usually ways to appeal the negative appraisal. Additionally, if the employee's understanding of excellence and the organization's standards are at odds — for example, if the employee has great creative talent in an organization that values standardization — then it might be better for that employee to find work elsewhere. A positive performance review, of course, provides a great boost to the ego and also lets the employee know which aspects of his or her work are most valued by the organization.
"How appraisals serve organizational and legal functions"
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