Performance appraisal is an essential element in the management of an organization. Its importance in the organization is viewed in the realms of enhancing the employees' satisfaction and motivation through promotions, transfer, and rewards hence making an employee feel that their effort is recognized by the organization (Khanna,2016). Similarly, the organization also benefits from performance appraisal through satisfied and motivated employees who work hard towards attaining the organizational objectives since they feel valued as integral parts of the organization (Murphy, Cleveland, & Hanscom, 2018). Performance Appraisal, therefore, impacts positively in organizational productivity owing to its benefits to both employees and management in achieving their goals in the organization through promotions, rewards transfers, and turnover retention.
Performance appraisal impacts positively in organizational productivity since it the primary contributor to the employees' satisfaction that subsequently results in the retention of turn over (Memon, Salleh, Mirza, Cheah, Ting, & Ahmed, 2019). Most employees like to be appreciated and motivated as integral parts of the organization. When such an environment is provided for employees, they will remain in such organizations instead of seeking better opportunities elsewhere, thereby increasing the current organization's turn over (Memon et al., 2019). Additionally, performance appraisal ensures employees' commitment and work performance in the organization since their roles and statuses in the organization are spelled; hence workers can gauge their positions regarding their job performance (Huain,2017).By knowing that, the worker feel motivated towards the tasks that they are assigned hence strive towards attaining the organizational goals. Finally, performance appraisal enhances the relationship between the management and the employees since through this, both stakeholders can identify their problems, discuss and clarify their expectations for the plan of the organization (Kumar & Chaturvedi, 2016). That could subsequently help the administration and the employee establish both short and long term goals that are aligned to each other hence both work hand in hand towards attaining the organizational productivity.
References
Husain, K. (2017). Impact of performance appraisal reactions on affective organizational commitment and work performance. Journal of Economic Info, 4(3), 1-6. https://www.readersinsight.net/JEI/article/download/94/143
Khanna, V. (2016). A study on the impact of performance appraisal on employee satisfaction in the IT sector. Delhi Business Review, 17(2), 103-116. http://www.delhibusinessreview.org/V17n2/dbr_v17n2h.pdf
Kumar, R., & Chaturvedi, S. (2016). Impact of Performance Appraisal on Job Satisfaction. International Journal in Management & Social Science, 4(5), 242-248. http://www.indianjournals.com/ijor.aspx?target=ijor:ijmss&volume=4&issue=5&article=032
Memon, M. A., Salleh, R., Mirza, M. Z., Cheah, J. H., Ting, H., & Ahmad, M. S. (2019). Performance appraisal satisfaction and turnover intention. Management Decision. https://www.emerald.com/insight/content/doi/10.1108/MD-06-2018-0685/full/html
Murphy, K. R., Cleveland, J. N., & Hanscom, M. E. (2018). Performance appraisal and management. SAGE Publications.
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