Any employee in a firm would be having his/her performance tested by the HRM department to see how well he is doing in the firm. This is known as performance appraisal. Every firm carries out a performance appraisal for its employees which are conducted by the HRM department. By conducting performance appraisals, the HRM department is able to know how well its employees are working and whether or not they should be trained further. If you are an employee, a performance appraisal would help you as it would be a way through which you would know if you are in line with the rest of the employees and whether you need to bring up your skills.

Performance appraisals are a way in which businesses can ensure success for their employees as they are able to keep a check on the work being carried out by the employees and whether or not work is being done to achieve the set goal.

Carrying out a performance appraisal is important for any type of business. There are certain benefits which performance appraisals have for the employers of the firm. Some of these benefits include:

–          By carrying out a performance appraisal, the HRM department is able to determine what the future needs of your company are likely to be.

–          With the help of a performance appraisal, the HRM department is likely to know which employee is good at what he does and what his strengths and weaknesses are. This will help the firm knowing as to whether or not the employee is worth enough to be kept in the firm.

–          By carrying out a performance appraisal, the HRM department of your firm will be able to judge as to which employee has progressed since the last appraisal. This will give the managers an idea as to which employee has progressed and deserves the benefits of having progressed and done well.

–          By carrying out an effective performance appraisal, the employees of your firm are likely to be motivated to do even better in the future which will help them grow in their careers.

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