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Chapter: Mechanical - Total Quality Management (TQM) - Principles

Importance of Performance Appraisals

The performance appraisal is used to let employees know how they are performing. The performance appraisal becomes a basis for promotions, increase in salaries, counseling and other purposes related to an employee’s future.


EFFECTS OF RECOGNITION AND REWARD SYSTEM

 

1.     Recognition and reward go together for letting people know that they are valuable members for the organization.

 

2.     Employee involvement can be achieved by recognition and reward system.

 

3.     Recognition and reward system reveals that the organization considers quality and productivity as important.

 

4.     It provides the organization an opportunity to thank high achievers.

5.     It provides employees a specific goal to achieve.

6.     It motivates employees to improve the process.

7.     It increases the morale of the workers.

 

PERFORMANCE APPRAISAL

 

The performance appraisal is used to let employees know how they are performing. The performance appraisal becomes a basis for promotions, increase in salaries, counseling and other purposes related to an employee’s future.

 


IMPORTANCE OF PERFORMANCE APPRAISALS

 

1.     It is necessary to prevail a good relationship between the employee and the appraiser.

 

2.     Employee should be informed about how they are performing on a continuous basis, not just at appraisal time.

 

3.     The appraisal should highlight strength and weakness and how to improve the performance.

4.     Employee should be allowed to comment on the evaluation and protest if necessary.

 

5.     Everyone should understand that the purpose of performance appraisal is to have employee involvement.

 

6.     Errors in performance evaluations should be avoided.

7.     Unfair and biased evaluation will render poor rating and hence should be eliminated.

 

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