Illustrate your understanding of the term ‘Performance Appraisal’. - Leaving Cert Business - Question 8 - 2002

Performance appraisal refers to the systematic evaluation of an employee’s performance in an organization. This process involves assessing the quality of the employee's work and providing feedback on their strengths and areas for improvement.

The primary purposes of performance appraisals include:

1. Evaluating Employee Performance: Appraisals help in putting a value on employee performance, focusing on how well they meet their job requirements and organizational objectives.

2. Guiding Development: They serve as a foundation for employee development, identifying training needs and supporting career progression.

3. Informing Reward Systems: Many organizations link their reward systems, including salary scales and bonuses, to the results of performance appraisals. This ensures that high performers are recognized and rewarded appropriately.

In summary, performance appraisal is a critical function of Human Resource Management (HRM), enabling organizations to maintain standards, support employee growth, and improve overall performance.