ormance. Performance measures should be quantifiable, easily understood, and bear a demonstrated relationship to organizational performance. Performance appraisal programs serve many purposes, but in general those purposes can be clustered into two categories: administrative and developmental. The administrative purposes include decisions about who will be promoted, transferred, or laid-off. They can also include compensation decisions and the like. Developmental decisions include those related to improving and enhancing an individual's capabilities. These include identifying a person's strength and weaknesses, eliminating external performance obstacles, and establishing training needs. Within many organizations, performance appraisals are seen as a necessary evil. Managers frequently avoid conducting appraisals because they dislike playing the role of judge. As a result appraisals are conduct annually, for good or evil, and forgot about. Largely the success of an organization depends on the performance of its human resources. To determine the contributions of each individual, it is necessary to have a formal appraisal program with clearly stated objectives. Carefully designed performance standards that are reliable, strategically relevant, and free from either criterion deficiencies or contamination are essential foundations for evaluation. The use of multiple raters is frequently a good idea because different individuals see different facets of an employee's performance. The supervisor, for example, has legitimate authority over an employee and is in a good position to discern whether he or she is contributing to the goals of the organization. Peers and team members, on the other hand, often have an unfiltered view of an employee's work activity, particularly related to cooperation and dependability. By offering enticing compensation packages, equitable pay, flexible benefits and known incentives an organization allows it...
