Conducting Performance Reviews - A Great Way to Lead the Business in Right Direction

Employees perform a very important role in the business organisation. Human Resources are considered to be an asset for the business. Without them an organisation cannot survive. It is therefore very important that they perform their duties in the correct manner. Employees can perform only when they are motivated and taught the correct standards of performance. One essential element in the process of motivating and teaching employees is conducting performance reviews. This process plays a very vital role in the field of human resource management of an organisation. It is only through the reviews that employees can know where they excel and where they fall back.

Conduction performance reviews enhances the coaching and mentoring opportunities for the supervisors and managers of the organisation. It reinforces that pay and performance are tied together. It improves performance by motivating the employees. These reviews define a clear basis for promotion, increments, disciplinary action and other related issues. Conducting performance reviews helps the organisation in identifying the training and development needs of the employees so that the productivity is enhanced. The reviews are a great way to bring in consistency to the organisation in terms of job performance of the employees. The reviews help in striking a balance between the goals and objectives of the employees with that of the organisation.

Another important aspect of human resource management of an organisation is performance appraisal. It is also an important element to consider while motivating the employees to perform better. Performance appraisal helps in revealing to the employees their areas of excellence and drawbacks. This would help them in improving their performance and nurturing their skills. If employees are praised for their performance, it creates a positive psychological impact on them and they are motivated to perform better. The organisation can also take corrective actions.

It is therefore very essential for business organisations to have a well defined performance review system so that the quality of work is improved and the organisation attains profitability and growth. Through these reviews, employees will get a sense of belongingness to the business and they would strive hard to improve its operations.

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