Descriptive Statistics of Employee Performances.
Performance appraisal is one such method that allows for the optimization of labor. In a broad sense, it is a formal structure that allows for the continued measuring and evaluation of individual behaviors and performance, while influencing an employees job related attributes through such factors as increased job satisfaction and recognition (with the use of promotional aids such as better equipment, duties, and wages). The purpose of any such system, is not only to measure the performance of human resources but also to find areas of skill deficit for further development (through employee feedback), identify excess potential that could be better utilized, and communicate objectives more accurately to workers. By doing so, businesses move one-step closer to the achievement of their set goals and objectives. Included here is also one other factor that is not a direct objective of appraisals, but becomes a valuable asset within itself. This simply is the provision for maintaining records of workers that are legally viable, that can protect the business when dealing in cases of dismissals and demotions. This is especially important in today's society because of the "increasing legislation and regulation dealing with victimization and discrimination" making employers liable for all their actions.
In establishing such a system, it is important to firstly determine realistic goals that will be expected of workers and then make these goals known so workers have direction. Once set, appraisals can be undertaken, in three steps. The first involves the observation and identification of an employee's work behavior, and the outcomes and achievements that are a direct result of them. These outcomes then must be compared against the original goal standards that were set for them. The second step revolves around the evaluation and action to be taken to counter the first step.