Question

articulate clearly the link between appraisal system and the productivity at individual level in an organisation.in addition reflect on the reasons for and the importance of performance appraisal to an organisation's productivity margins

Answer 1

Appraisal system forms a medium for the organization to understand the productivity of a particular employee, at the same time giving opportunity to the employee to display his/her hardwork and dedication towards the allotted tasks. The individual gets to show his/her efficiency and skill in achieving the targets allotted by his/her managers. Also, this ensures there is transparency in the organization's appraisal system, as the high performers are rewarded accordingly and the low performers are provided training, consultation and guidance to improve their performance. Therefore appraisal systems tend to increase motivation among employees and individual productivity.

Following are the reasons for and the importance of performance appraisal to an organization's productivity margins:

1. Increase motivation among employees
2. Provide rewards and appreciation to deserving employees
3. Understand the non-performers. Managers can work with them to improve their efficiency which will lead to increased organizational productivity.
4. Facilitate communication - upward as well as downward. This will help the top management convey the organization's goals, objectives, vision and mission to their sub-ordinates and enable the staff to voice their requirements and necessities for example training or tools and equipment, etc.
5. Strict action can be taken against consistent non-performers or inhibitors of productivity.
6. Improved efficiencies cause increased customer satisfaction. This leads to increase in sales and profitability.