Performance appraisal systems have some characteristics and benefits of it (Bee and Bee 1994). These are,
a. It should take place by regular meetings between manager and employee.
b. It reviews and assesses employee’s performance on the job.
c. Identifies any action needed to improve performance.
d. It is a tool to identify training needs.
e. Provide information for succession planning (Cole 1993).
Quality of performance appraisal systems may be in question because of its subjectivity (Bee and Bee 1994). But they referred it as the principal way of identifying training needs. Bratton and Gold (1994) said that performance appraisal is an ‘information-processing system’. Through appraisal error, effectiveness, weaknesses can be identified. Randell (1989; cited by Bratton and Gold 1994) suggested a performance control approach to appraisal (figure 2.4).
Figure (2.4): A performance control approach to appraisal (Randell 1989; cited by Bratton and Gold 1994, p. 173)
Performance appraisal system is useful tool for managers to identify, assess the effectiveness of performance. Through Ranndel’s (ibid.) performance control approach various areas of training can be covered; like reviewing job description, objectives, evaluation. What kind of performance appraisal can be used will depend on the environment and needs of work; but it is very useful for processing training needs analysis.
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