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Performance Appraisals are normally called as annual reviews, achievements, and growth, evaluate an employee’s skills and much more. Companies and other organizations mainly use this type of Performance Appraisals so as to motivate their employees and retain their employees as well. As companies have limited sources of funds by the method of performance appraisals helps the companies in allocating its funds in an appropriate manner. Performance Appraisals help the company to understand that which employee has contributed his or hers dedications for the growth of the company. This is the main reason that companies reward their top performing employees only. This technique helps the managers to create a definite plan for employee management through increased responsibilities and additional training and to identify the shortcomings of the company where the employees can work to resolve them.

Performance Appraisals is not the only way where the managers and employees communicate with each other and discuss the employee’s contribution to the development of the company. Frequent conversations help everyone to stay on the same page and build a stronger relationship between managers and employees, and this will help in making annual reviews less stressful. Now we will learn some of the in-depth details about Performance Appraisal types given below are the pointers which will help us know that why performance appraisals are required. They are as follows:-

    1. Performance Bonus – This is a form of compensation which is being paid to a department or an employee for achieving the specified goals and predetermined targets. A performance bonus acts more than that of a normal salary or wages are given to any employee who is working in the organization and it is usually given after a performance appraisal. Still, not many companies offer Performance Bonus and those who does they only offer those types of employees who perform an exemplary performance. Companies who provide employee review process, they set a threshold score so that any employee can exceed or meet the target to be considered for the bonus or reward. This bonus is given when employees start to perform above the expectations of the company.


    1. Performance Management System – This is a method according to which employees and managers work together to monitor, plan and review the employee’s overall contribution to the organization and the work objectives as well. It acts as more than just an annual performance review, and it is a continuous process in setting objectives, providing on-going coaching and assessing progress. This helps in providing the actual feedback to the company that the employees are working hard to give the best contribution to the growth and development of the company so as to achieve career goals and other company related objectives. The primary fundamental aim of performance management system is to improve and promote employee effectiveness. This establishment of a perfect Performance Management System requires time the support of the board of directors, managers, and the executive directors.


    1. Objective-Based – This is a very simple method of performance evaluation system, and this method helps in understanding the track of the progress of the employees. Here an employee and employer have to agree on a specific purpose according to which the employee have to meet the deadline of the main goal given by the employer. If the employee meets the objective within the given period, then the employee gets the performance appraisals by the organization itself.


    1. 360 Degree Appraisal – To look for comprehensive, in-depth insights and feedback on an employee’s performance then this type of appraisal comes to work. The work of a 360 Degree Appraisal helps in gathering and accumulating information about the employee from different parties like colleagues, managers, vendors and even from clients as well. The more information collected against the employee, the more perfect it becomes the performance review about the employee. Though this type of method sometimes becomes more laborious and time-consuming when compared with the first three methods. Still, many employers prefer this method as it helps in providing an unbiased result they receive from others.



Every manager, as well as employees, often discuss about one question which is that why organizations do employee performance appraisals what are the advantages and disadvantages the company bears. So according to this frequently asked question, we will do an in-depth research about the advantages and disadvantages of performance appraisals. They are as follows:-


  1. Performance Appraisals helps in providing the document required to show that the employee has performed very well over a period of time.
  2. This helps in providing the structural formation where the manager can discuss and meet the performance of the employee.
  3. This helps the manager to provide the exact opportunity for the feedback of the employee that what they need to accomplish their employment goals.
  4. This helps in giving a clarified expectation procedure so that the employee can discuss the structure of performance with the manager.
  5. The main and foremost thing is that it helps in motivating the employees to work for the improvement of the organization as well as for the employees too.
  6. Performance Appraisals helps in providing a structure for planning and thinking for the forthcoming years as well as developing employee objectives.


  1. If the performance Appraisal is not performed accurately, then it may result in a negative experience.
  2. Performance Appraisals are mainly very time consuming even can hamper the productivity of the organization and can become an overwhelming situation towards managers along with many employees.
  3. This creates a stressful surrounding for everyone who is involved in it.
  4. These are mainly subject to rate the errors and human assessments.


So from the above pointers, we can see that the advantages are so many when it comes in comparison with the disadvantages, but the points in the disadvantage section are very crucial too. This is very much helpful to everyone so that they can help the organization to be well maintained and keep their balance in such a way, so there will be no chance of mismanagement.


As a Team leader or manager, we will have many essential roles to play and responsibilities to attend to. One of the most important things is to Appraise our Team Associates or members who are supporting the manager as well as contributing their performance for the improvement of the Organization too. Performance Appraisals are some wonderful opportunities for the manager to declare the results of the employees individually so that he or she can provide the feedback appropriately. Below are some pointers about Performance Appraisals which will help us to understand the importance of it. They are as follows:-

    1. Performance Feedback – Each employee has the urge to ask their managers that how well they are performing at present and how they can increase their performance in a more accurate way. Employees want to know this information as they want to develop their performance in order to get merit pay and other types of promotions. A proper performance feedback can help the employees to perform more vividly so that they improve themselves for future requirements. As it helps the employees to stay motivated while they work for the company.


    1. Promotions – The perfect Procedure to find that which employee is performing in a better way is through Performance Appraisals. As it helps the company to find the right employee who can get the right promotion for his or her contribution to the company. Past Appraisals with accurate information about the background data helps the manager to find out that whom he or she should select for promotions.


    1. Employee Development and Training Decisions – Performance Appraisals also helps in finding out that which employees require getting additional training so that they can acquire the exact knowledge to perform more excellently. This helps a manager to understand that whether he needs an additional training process so that he can sharpen up his knowledge and perform accurately too. This helps in finding out whether the manager is required the training after he or she is given the promotion for the higher position.


    1. Layoff Decisions – It is a very better way of taking layoff decisions. Employees may be requested to lay off if they are not performing after giving the right training and development programs. Here the company tries to target the weakest performer; then there becomes a high chance that among the best employees can be laid off too due to not performing correctly or due to any other reasons.



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The honest and important thing is that we understand the demands of our student’s help with any types of subject writing even dissertations. We know and feel the situation a student undergoes, we try to present them the exact support with our best Performance Appraisals Assignment expert writers. We also provide management assignment online help which is uncommon and absolutely plagiarism free. Assignments4u have 5500+ Assignment editors for specific management homework support. Hence we are pretty advanced in providing the best innovative solutions towards the Strategic Management, Financial and Corporate Strategy homework related problems.

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