Page 114 - E2 Integrated Workbook STUDENT 2018

Chapter 8

2.4 Benefits of a performance appraisal system

A performance appraisal system can bring many benefits to both the individual and
the organisation.

Benefits to organisation

 A system for assessing
competence of employees and
Benefits to individuals identifies areas for
improvement

 Provides feedback about  Provides a fair process for
performance reward decisions

 Identifies work of particular  Helps identify training needs
merit
 Improves communication
 Provides a basis for between managers and
remuneration subordinates

 An opportunity to discuss future  Provides clear targets linked to
prospects and ambitions corporate objectives

 Identifies training and  Provides a basis for HR
development needs. planning

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