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Managers perform annual performance evaluations to provide critical feedback to employees. The annual performance evaluation is also a time for managers to distribute yearly pay raises or bonuses to workers who have performed well during the review period. Appraisals are a tool managers can use to improve the efficiency, productivity and morale of workers in the company.
Performance evaluations provide the opportunity to reinforce the expectations the company has for workers in regards to job duties, quality and productivity. Communicating the expectations gives the worker the ability to meet the requirements of the job and earn positive appraisals. Managers get better results when employees have a clear picture of what the company expects on the job.
Positive and negative feedback is an important part of a performance evaluation. The appraisal is a chance for managers to sit down with employees and identify the areas the worker can improve and those they performed well. Managers can provide workers with the information the employee needs to obtain better evaluations in the future. It is important for managers to give praise when the worker deserves it. Giving praise to employees improves morale, which can increase productivity and reduce worker turnover.
A well-rounded performance appraisal requires the worker to assess his own performance on the job. The self-assessment allows the worker to take an honest look at his work during the review period and point out his achievements and weaknesses. The employee has an opportunity to state his point of view on his job performance. Giving workers an opportunity to assess their own performance can improve morale.
The performance evaluation is a good time for managers and workers to discuss goals for future review periods. For example, when a worker expresses an interest in taking on more responsibility on his job, the manager can arrange to give the worker more opportunities during the review period. In addition, when a manager knows the goals of his workers, he can better utilize the staff and help employees achieve their ambitions.