9 Ways Performance Appraisals Promote Business Development
Employee performance is an essential ingredient in any company's ability to achieve its goals. Therefore managing employee performance is integral to business success. A well managed performance appraisal assists managers to assess and provide feedback to increase the competency of their team members. Developing skills, knowledge, attitudes and increasing team member capability are key objective of performance appraisals. For many businesses performance appraisals results in spending 'time on the business' to build capability.
Performance appraisals promote business development in the following ways:
1. Drive business performance
Facilitating performance appraisals means managers making an effort to communicate with their employees. Managers who care about the performance of their people and business will recognise the importance of providing feedback and assisting their team members to grow and develop. The performance appraisal is a proactive HR solution in driving business performance.
2. Improve employee productivity
Assessing employee performance against job expectations provides the opportunity to improve capability and productivity This is achieved by communicating how the person has performed and identifying key result areas (KRA's) and behaviors s which with improvement will increase capability, productivity and profitability.
3. Identify specific areas for improvement
An effective performance review process will consist of a plan specifically aimed at improving KRA's and behaviors that have been identified as requiring improvement.
4. Address poor performance
Conducting performance appraisals enables you to talk about performance and behaviour that has been previously identified where improvement has been required.
5. Identify future development requirements
Performance appraisals help confirm employees' strengths and weaknesses and identify future competency requirements to perform their current or another role. Through targeted development, team members will increase their value to the business as they increase in capability.
6. Make informed employee decisions
Employee decisions regarding improvement, promotion, job changes, and termination can be achieved through the performance appraisal process. The process provides managers with the opportunity to empower and delegate responsibilities to team members.
7. Increase the organizations capability
Performed organization wide the performance appraisal process increases the organisations overall capability resulting in a competitive advantage - your people.
8. Recognize, retain and reward high performers
Having a strong link between effort performance and reward will motivate team members. Performance appraisals provide a HR solution which can be linked with intrinsic and extrinsic motivation methods, resulting in increased team member engagement and capability.
9. Improve profitability
Having a more capable, competent and motivated team will improve communication, productivity and ultimately profitability.
Businesses that see performance appraisals as a strategic method to develop employees benefit because the added competence further develops the organizations capability, competitiveness and sustainability.
Improve productivity & profitability
Article by David McGillivray of Successful Business Strategies
Courtesy of the Recruiting Blogswap, a content exchange service sponsored by CollegeRecruiter.com, a leading site for college students looking for internships and recent graduates seeking entry-level jobs and other career opportunities, and posted on GadBall Blog.
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