Uses of Performance Appraisal

  1. The use of performance appraisal is that it enables the management to make effective decisions and/ or correct or modify their earlier decisions.
  2. The another use of performance appraisal is that it helps to evaluate the existing plans, information system, job analysis, internal and external environmental factors influencing employee performance like relations with supervisors, working conditions, personal problems of the worker like family, financial and health. This evaluation suggests and results in improvement in plans, inf0rmation system, and job analysis, creating the conducive work environment and controlling the controllable environmental variables.
  3. It helps the employee to improve his performance and for his self-development.
  4. Further it Improves superior- subordinate relations through close interaction and proper understanding.

Despite these benefits, certain problems are associated with appraisal methods.