After selecting employees, performance appraisal is perhaps the most important tool in management used at their disposal. Organizations are normally concerned about the development, position of the employees and also thinking of managing the performance of the subordinates. This is a highlight of the importance and purpose of performance appraisals, proper steps taken before the appraisal is put into motion, elements of a good appraisal system and the criteria for each element that should be presented in a performance appraisal system. Organizations have recognized the importance of performance in a work environment and performance appraisals because it enhances the productivity of its employees with the system. The managers of companies are well-informed of the importance, seriousness of a performance appraisal and the effects it has on the loyalty to job, motivation and job satisfaction, it is the growth and success of an organization. It also encourages good performers to do better but it also shines light on the poor performing employees. It is a process in which the human service department obtains, analyze, and make decisions on the performance of workers over a period of time. Its main objective is to focus on the performance, key elements of the job, and where improvements are being made and where they need to be made. The purpose of an appraisal system on performance is to improve the human resource department of any organization by gaining the knowledge of what 's going on within the company. It is evidence for pay increases or terminations and is designed to create talk amongst supervisors and management and/or direct contact form employees to bosses that can result in positive outcomes for the business, co-workers and the individual who relayed the information. This is attained by reviewing past and present performances
References: 1. Worcester Polytechnic Institute- http://www.wpi.edu/offices/hr/performance.html 2. Library Worklife http://ala-apa.org/newsletter/2010/06/08/hr-practice/