What are the Outcomes of Performance Appraisals?

Organizations have traditionally been conducting performance appraisals or reviews for their employees once a year (or more frequently). One of the main objectives of the performance appraisals is to ensure that employees perform well to achieve the organization objectives.

The following outcomes would enable an organization to benefit from the overall performance management exercise:

  1. The rating distribution – this will help the management to reward good performers and recognize their efforts, whereas it serves as a warning to poor performers to improve their performance.
  2. The final rating for employees is an outcome of the performance appraisal.  This can help to detail out the compensation of the employees.
  3. An employee’s competency gaps can be identified and areas of improvement in the performance can be suggested.  Managers can take the necessary steps to help the employees improve on those areas. This will lead to growth of employees as well as organizational growth.
  4. Identification of high potential employees. This can help in succession planning of an organization.  High potential employees can be nurtured and can turn out future leaders.
  5. The necessary training requirements of employees can be an outcome of the performance appraisals.  This can be a very valuable input to the training department, who can plan their training calendar based on that.

To summarize, outcome from performance appraisals should help in Compensation management, Succession Planning and planning the training needs.

Synergita is flexible performance management software, and provides good support for the above.  Its analytical capabilities help in succession planning and training needs.

For instance Synergita provides 9 quadrant reports which will help organizations to find out their star employees and high potential employees.  Organizations can concentrate on them and nurture them as leaders.

Synergita’s strengths and weakness report can be a great help to the training department, where they can plan the training based on the weakness of the employees.

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