Performance appraisals play a major role in motivating the employees’ organisations. Appraisal is that time of the year, when an employee and his/her supervisor, sit together for a lengthy interactive discussion about all aspects of the job.

This can be evaluated by direct observation, particular work results, comments by peers regarding the employee’s work and other records such as attendance, financial records, safety inventory, etc. This increases the productivity of the employees in certain ways, like:

Motivation to work: Performance appraisal, acts as a motivation to the employees. This improves the way they work for the development of the organisation and in turn boosts up the overall productivity.

Motivating employees, instills a sense of loyalty and commitment towards the organisation. This also helps them in setting clearly defined goals, which in turn motivates them to work.

Creating a comprehensive plan for employee development and sharing their achievements will inspire a higher level of efficiency.

Excel in their current role and aim for the next level: Through performance appraisal, employees can easily maintain their position within the organisation and succeed to reach the next hierarchy.

With greater appraisal, comes a greater position, which commands respect, while creating avenues for growth. This leads to a higher productivity among employees and their progress. This, in turn, also improves the organisational productivity.

Take ownership of job responsibilities: For the annual review, a manager should keep a track of the work done by all the employees, their achievements and challenges throughout the year.

Once, all the feedback regarding the employee’s work is given to them during the appraisal, they benefit from their accomplishments.

They take complete ownership of their roles and responsibilities and accept the challenges faced by them. By taking ownership of performance issues, the employee works with even more commitment and dedication.

Employees must be treated as an integral part of the organisation, as that leads to increase in ownership.

Eagerness to work: Always opt for an open-door policy as making decisions behind closed doors leads to growth of employee distrust in the organisation. Employees need to be kept in the loop of decision making. They should feel that they can easily approach their employer without any hesitation.

The employer should also create a culture of open communication, enabling employees to approach him at any time. These appraisals, also give employees the opportunity to prove their role.

Often, employees get demotivated with a lack of hike in pay. In such a scenario, providing incentives boosts their moral, thereby increasing their productivity. This creates an eagerness and willingness in the employee, to work.

Monetary and non-monetary rewards: The data collected from the performance appraisal is valuable for employees and the organisation. This allows some rewards to the employees, it maybe monetary as well as non-monetary.

Increment in salary, promotion, demotion and termination are linked with the growth and success, reflected in the performance appraisal data. These rewards, help in retaining the employees.

The constant motivation by managers, gives employees a sense of job security and satisfaction. This system is a check on whether the employees are performing their duties properly.

Through performance appraisals, managers also get the assurance, that the objectives of the employees are linked with the objectives of the organisation.

Managers are well informed about the criticality of performance appraisal and its ultimate effect on employees’ job satisfaction and productivity.

The writer is general manager – hr and publicity & promotion, Karam Industries