5 Performance Appraisal Objectives

Setting actionable appraisal objectives that are connected to the overall objectives of the organization is crucial regardless of the industry you are in. Performance reviews shouldn’t be thought of as a yearly or biannual activity that only assesses an employee’s prospects for promotion. The objectives of performance evaluation should be more expansive, consistent, and based on the fundamentals of talent management. Your performance management system should establish an organizational culture that rewards exceptional performance and values diligence.

A systematic and ongoing process of evaluating an employee’s performance based on previously established goals that are in line with the company’s objectives is known as performance appraisal. It is finished by a clearly defined review process that evaluates each employee’s professional and personal skill set in comparison to the desired strategic outcomes of the company.

It’s important to assess where we are right now before moving on to the ideal appraisal structure and systems. Despite how comprehensive and admirable those performance appraisal goals may seem, neither the employees nor management participate in the process to the expected extent. According to a particular study, 95% of human resources managers. are unhappy with their company’s performance appraisal methods.

Additionally, research has shown that familiarity between those who are appraised and those who are being evaluated may cause performance ratings to be skewed. This “rater bias” demonstrates how raters favor people who are similar to them by giving them high performance ratings. This casts serious doubt on and weakens faith in the meritocratic, objective foundation of performance evaluations and their ultimate outcomes.

It makes sense then why some analysts have referred to performance reviews as a relic and ritual of the past that is struggling to maintain relevance in the modern era. Some people think that in their current form, they are a relic of the previous century and have little relevance today. Among employees, only 55% feel that they serve any purpose. Obviously, something needs to be changed. Consider these annual review tips to make it more meaningful and pertinent to today’s workplace if you choose to continue using annual reviews to gauge employee performance.

The traditional models of performance evaluation were created and implemented in a different corporate environment where employee tenure was longer and there was less opportunity for lateral movement. The time when employees were expected to work for a single company for decades is long past. As of 2018, male employees spend, on average, 4. 3 years with a company. For women, the average tenure is 4 years.

Additionally, the management’s annual evaluation of the workforce was primarily seen as the performance review objectives. In other words, this was the commentary the company was providing to its employees. These would clearly affect the employees’ pay and future opportunities for advancement. For many years, those models were effective for the sector, but contemporary conditions necessitate a more thorough evaluation of performance review goals.

It’s crucial to comprehend the cultural changes that have occurred over the past decade or so as we define appraisal objectives. Additionally, digitization has brought about a world of instant feedback. Employees are also consumers who are accustomed to providing and receiving real-time feedback on everything from their eating habits to their travel destinations to their places of employment.

An annual appraisal might seem less useful in such a digital world of instant reviews, which creates a significant dissonance. The desire for reviews that are not only immediate but also conversational in style has grown as a result of social media. Employees are perceived as preferring informal, more frequent conversations about their performance to formal, infrequent appraisals. Unfortunately, the system is programmed to do mostly annual reviews.

The stated purpose and objectives of a performance appraisal determine how effective it will be. The purpose of the exercise must be understood by the managers and employees. Is it a routine exercise to determine whether an employee deserves a pay raise and, if so, how much; to determine whether the employee is qualified for a promotion; to provide incisive feedback on personality traits that could enhance their performance; or to provide feedback on the need for re-skilling or up-skilling?

The objectives can be effectively defined and implemented once the situation has been given careful consideration. When doing so, it’s important to make sure they align with the company’s goals. Here are 5 performance evaluation objectives that businesses can use to implement a process that is focused on results to assist you in that.

Objectives of Performance Appraisal

Objectives of performance evaluation

Knowing a performance appraisal’s goals will help you to appreciate why it’s so important for both employees and the company as a whole to have evaluations at work. Here are the objectives of performance evaluations:

Productivity improvement

A team’s level of productivity has a direct impact on a company’s ability to succeed. To receive a favorable performance evaluation, an employee must be productive at work, but managers can also use the appraisal process to address any areas that need improvement. The performance review is where a manager can explain to an employee what specifically they need to do to meet expectations if an employee’s productivity is lower than expected and than their goals allow.

Identify mistakes

Workplace mistakes are common, but with performance reviews, a manager and employee can spot these problems and address them right away. They can also collaborate to develop a solution and some objectives for avoiding frequent errors in the future.

Promotion opportunities

It is simpler for leadership to determine which employees should be promoted based on their performance when performance appraisals are used to document an employee’s performance. Management can compare two employees based on their evaluations in the past to determine which is more qualified for a brand-new, more challenging position in the workplace.

Employee goal setting

A supervisor and employee should talk about the employee’s professional goals during performance appraisal sessions. The employee may be able to choose goals they want to work on based on past performance or the needs of the company, and the manager can set goals that the employee must achieve within a certain timeframe. For instance, managers might want their staff to take the lead on one significant project in the upcoming quarter. A worker might decide they want to show up for work on time every day of the week.

Employee development

Employee development opportunities and goals are related, but they can also be two distinct things. The performance review procedure identifies opportunities for employee development through training, conferences, seminars, and other events. In order to help the employee advance in their position and set them up for a promotion, the manager and employee might devise new responsibilities.

What is a performance appraisal?

An employee’s performance is evaluated on a regular basis by their management team. Employees typically receive an annual review, but many businesses also carry out performance reviews after 30, 60, and 90 days of employment, and even every six months after that.

When reviewing an employee’s performance, the manager will talk to them about all of their accomplishments, their overall performance, their contribution to the company, and whether or not they achieved their goals. The employee can share feedback regarding their short- and long-term professional goals during the review.

Advantages of performance appraisals

Here are just some advantages of performance appraisals:


One benefit of performance reviews is that they encourage employees to keep up their good work and give as much as they can to the company. The evaluation procedure gives the worker the chance to demonstrate their accomplishments and feel appreciated for a job well done while also assisting them in understanding what their manager expects of them.


Employees who go through an evaluation process might also be more committed to the business. This is so because evaluations give employees a sense of value and significance within the company. Employee loyalty aids a company in lowering staff turnover, saving money on recruiting and training new hires, and maintaining high standards of performance.


Additionally, communication between a manager and each employee they evaluate is improved by performance reviews. Even in workplaces where managers and staff collaborate on projects and have open lines of communication, they might only regularly discuss goals, motivations, progress, or performance during appraisal meetings. A performance appraisal process enables them to have more in-depth discussions about a worker’s position within the company and potential career paths based on performance.


Even the prospect of a one-on-one meeting with managers can encourage staff members. In appraisal meetings, managers can encourage staff members to express their opinions and offer feedback on the business. Recognizing an employee’s efforts and successes is a small but powerful morale booster that can help that employee continue to work hard on projects in the future.


Additionally, a performance review clarifies the employee’s expectations and objectives. By asking their staff about their experiences at work, managers can also gain clarity.

For instance, an employee might explain to their manager during an evaluation meeting that they want more responsibilities because they don’t feel challenged enough. Without the meeting to discuss the workers’ performance and individual needs, the manager might not have learned about this. With this information, the manager can create training opportunities or give the employee more projects so they feel satisfied with their work.


What are the main objectives of performance appraisal?

Performance reviews’ primary goal is to gauge employee performance, help them perform better going forward, and increase their value to the business.

What are the objectives of performance?

7 objectives of a performance appraisal
  1. Help employees set goals.
  2. Motivate high performing employees.
  3. Counsel underperforming employees.
  4. Support for raises and promotions.
  5. Plan for new hires.
  6. Determine overall training needs.
  7. Create a paper trail.

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