Performance appraisals can provide strategic advantages at a multitude of levels. “PM [Performance Management] identifies organizational goals, results needed to achieve those goals, measures of effectiveness or efficiency (outcomes) toward the goals, and means (drivers) to achieve the goals. This chain of measurements is examined to ensure alignment with overall results of the organization.” (McNamara, N.D.) In order to properly administer a performance appraisal, there must be a comparison between performance and organizational goals. This allows the employee the opportunity to completely understand what the company is expecting from that employee. By understanding goals, an employee can focus on ensuring those goals are met.
Appraisals also gives supervisors an idea of the weaknesses an employee may have and whether further training needs to be held for professional development.
References: Business Management Daily (2012) Block Inadvertent Bias from Creeping into Reviews Retrieved May 15, 2013 from http://www.businessmanagementdaily.com/13283/block-inadvertent-bias-from-creeping-into-reviews McNamara, C. (N.D.) Performance Management: Benefits and Concerns Retrieved May 15, 2013 from http://managementhelp.org/performancemanagement/benefits.htm Youssef, C. (2012) Human Resource Management. San Diego, CA: Bridgepoint Education, Inc.