Performance appraisal systems are designed to:
A. Assess employee performance
B. Increase market share
C. Improve product quality
D. Enhance financial planning
Answer (2)
Performance appraisal systems are designed to assess employee performance, focusing on evaluating how well employees meet set expectations and criteria. They involve a thorough review conducted by managers or through peer assessments and are crucial for career development. Therefore, the correct choice is option A.
;
Performance appraisal systems are designed to (A) Assess employee performance.
A performance appraisal system is a systematic evaluation of employees' work performance. Its purpose is to understand the abilities of a person for further growth and development. Here's a step-by-step explanation of how performance appraisal systems fulfill this role:
Purpose : The primary objective of performance appraisals is to assess employee performance. Employers use this tool to ensure that employee activities and outcomes align with organizational goals.
What It Involves : During a performance appraisal, an employee's job performance is reviewed and evaluated by their manager or supervisor. This process often includes setting performance standards and objectives for the future.
How It Works : Common methods involve regular feedback sessions, self-assessments, peer reviews, and formal assessments by supervisors. Tools used may include rating scales, checklists, and discussion of key performance indicators (KPIs).
Why It Matters : The assessment helps in identifying employees who are excelling or those who may need support or training to improve their performance. It fosters communication between supervisors and employees, enhancing motivation and job satisfaction.
Outcome : The results of an appraisal can influence decisions related to promotions, compensations, and skill development programs, ensuring that the right people advance in the organization.
Options (B), (C), and (D) like increasing market share, improving product quality, and enhancing financial planning are more related to strategic management processes and different systems such as quality management or financial management. Therefore, (A) is the correct option as performance appraisal systems primarily focus on evaluating and improving employee performance.
