The Importance of Performance Appraisals

Introduction: An organization is a group of people gathering to achieve a specific purpose. If team members' performance is good, we can achieve our goals. Performance is the result of activities offered to employees within an organization over a specific period of time. Evaluating employee's current performance based on historical achievements and organizational standards is called performance evaluation (Dessler, 2005). In addition, performance evaluation helps companies understand how to improve their performance and performance, thereby improving the company's performance (Grubb, 2007).

In this article, we first explain the basic concept of performance evaluation from the beginning, then explain the importance of performance evaluation, point out problems leading to invalidity evaluation, and use case to explain its importance . Performance evaluation Performance evaluation is one of the most important parts of the personnel management system. Performance assessment is a way to acquire, analyze, and document evidence of employee relative value to an organization. This is an analysis of the employee's recent achievements, strengths and weaknesses, and the adaptability of future training or promotion. In addition to distributing remuneration, organizations use evaluation to provide more advice to employees and understand their views on positions, departments, supervisors, and organizations (Walsh and Fisher, 2005).

As one of the most important functions of human resources management, performance evaluation plays an important role in the success of human resources management of the organization. Performance evaluation affects organization's productivity and competitiveness Performance evaluation results are important indicators of personnel decision-making, and effective performance evaluation leads to better employee management. Performance assessment is important to the organization of the private or public sector and an effective performance evaluation system helps private or public sector organizations achieve strategic goals. However, due to the complex relationships within the organization and the complexity of establishing an appropriately designed evaluation system, performance evaluation is not always as effective and useful as expected. After all, building an effective evaluation system is not easy and can not be done overnight (Caruth and Humphreys, 2008).

Clearly, performance assessment is very important in an organization as an important function of human resources management, as human resources management contributes greatly to the realization of organizational goals by private or public sector organizations. Without a performance evaluation system, it is difficult for an organization to clearly understand its current situation, so organizations become dangerous because they can not achieve the direction and goals of improvement in the future. If deviations and errors are full of the performance evaluation system, the organization will invest the resource in the wrong direction, and as a result the organization will lose long-term competitiveness. Instead, an effective performance evaluation system ensures that the organization's resources are invested in the most important processes, thus increasing the competitive advantage of the organization.