What Are the Pros and Cons of Performance Appraisals?


Quick Answer

Performance appraisals provide personalized feedback designed to help employees grow. The interaction with employees also conveys their importance to the organization. However, mistakes by companies and managers in implementing appraisals minimize their effectiveness, and appraisals take time to administer.

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Full Answer

A primary communicate benefit of an appraisal is the interaction it creates between a supervisor and his employee. This time allows dedicated praise and constructive direction from the manager to the worker. It also gives the employee an opportunity to ask questions, bring up concerns and give input to the manager. The manager and worker also review progress toward current goals and set new ones when appropriate. When an employee needs to develop new skills, the manager can recommend training or coaching opportunities. The manager and employee can also discuss new projects or roles.

To make appraisals work, managers need to allocate a lot of time to gathering information and materials on the employee's performance. In some cases, managers may track performance for up to a year. Many managers struggle to deliver feedback effectively. Some are too lenient and don't offer direct critiques and motivating words. Others are too harsh and may deflate the ego of a worker, which is demotivating. The employee and manager may also disagree on what is communicated.

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