Appraisal Management System as a Talent Development Strategy

According to a recent Human Resource Forum Poll, 16% of the respondents indicated that they did not have any appraisal management system for measuring performance. In fact, both HR managers and employees found the appraisals procedure uncomfortable. From the managers’ point of view, judging someone was difficult; while for the employee, it was unpleasant to be judged. This is where the appraisal management system comes to the rescue. A performance management system aligns individual goals with the overall organization goals. And the key to the success of any appraisal system is its timeliness and objectivity, which require both transparency as well as confidentiality.


Benefits of an Appraisal Management System
An appraisal management system provides the following advantages for the employee, HR managers and company:


1. Performance Based Compensation and Rewards
Most of the time, managers get caught up in fulfilling their various responsibilities and often don’t have much time to interact with the rest of the staff.  A performance management system forces managers to discuss performance issues with employees and allows the managers to reward the right employees. It also allows the company to budget properly and set the stage for performance improvement plans and any other actions that may follow. It also encourages and motivates employees to perform at advanced levels.

2. Aimed Staff Development
A performance management system is a good way to discover developmental opportunities and is an important part of a progression process. It helps employees remain updated on ongoing performance evaluations, so that they can act thoughtfully and consistently to the facts. This way the appraisal management system helps improve morale and increase productivity.

3. Poor Performers Identified 
Not only it is important to reward good work, we also need a platform to deal with employees who need improvement. An appraisal management system helps in identifying and documenting poor performers and allows a smooth transition if the relationship needs to be terminated.

4. Documentation of Employee Performance
It is crucial for an organization to keep performance records of all employees. These documented records can be used in the event of any legal occurrences to explain why certain actions were taken. They also serve as proof that company policies and employee and company rights have been upheld.


Companies should take an overall look at their appraisal management system and have very specific goals that are tied to planned initiatives and the performance management system. An appraisal management system, administered fairly by skilled supervisors and managers, is the best thing for a company and for its entire staff.