Question

Which of the following are objectives of a performance appraisal system ?

A. To help an employee in finding out his/her own strengths and weaknesses.

B. To help in creating desirable organizational ethos.

C. To help in identifying people for the purpose of motivating and training them for new roles.

D. To help in distinguishing the non-performers from performers.

E. To enable learners to understand the weakness in the system.

Choose the correct answer from the options given below:

1. A, B, C only
2. B, C, D only
3. C, D, E only
4. E, D, A only

Answer 1

Correct Answer - Option 1 : A, B, C only

Performance appraisal

Performance appraisal is a method of evaluating the job performance of an employee. It is an ongoing process of obtaining, researching, analyzing, and recording information about the worth of an employee.

Objectives: The main objective of performance appraisals is to measure and improve the performance of employees and increase their future potential and value to the company. Other objectives include:

• providing feedback: Through its performance appraisal process the individual learns exactly how well he/she did during the previous twelve months and can then use that information to improve his/her performance in the future
• facilitating promotion decision: Performance appraisal makes it easier for the organization to make good decisions about making sure that the most important positions are filled by the most capable individuals.
• Encouraging Performance Improvement: A good performance appraisal points out areas where individuals need to improve their performance.
• Setting and Measuring Goals: The performance appraisal process is commonly used to make sure that every member of the organization sets and achieves effective goals.
• Counseling Poor Performers: Performance appraisal forces managers to confront those whose performance is not meeting the company’s expectations.
• Determining Individual Training and Development Needs: If the performance appraisal procedure includes a requirement that individual development plans be determined and discussed, individuals can then make good decisions about the skills and competencies they need to acquire to make a greater contribution to the company. As a result, they increase their chances of promotion and lower their odds of layoff.

Conclusion: The objectives of the appraisal system is to identify strength and weakness of the employee and accordingly arrange for their training, motivate them by giving appropriate feedback, feel the communication gap, set and achieve goals of the institution, etc.

Hence, the correct option is (1).