The overall effectiveness of an organization tends to improve when there is competent appraisal of performance of an individual or groups in an organization. There are three key functional areas of result oriented appraisal system that is connected with organizational performance as described by McGregor in Moats (1999) namely; administrative, informative and motivational appraisal. Result oriented appraisal serves as an organizational role by exerting orderly methods of determining rewards such as salary increment and bonuses, by allocating authority and responsibilities to capable individuals (Addison-Wesley, 2001). Result oriented appraisal will fulfill its informative function when the system of appraisal provide data (information) to the managers and measures about the strength and weaknesses of individuals. Performance appraisal plays major role when used effectively, by helping managers and employees to establish goals for a particular period before the following appraisal (Addison-Wesley, …show more content…
Furthermore, appraisal can increase communication when the employees has the opportunity to express their ideas and expectations and shown how they are progressing (Muchinsky, 1997). Not only that, result oriental appraisal can progress quality of working life in organizational performance through increasing mutual understanding among managers and employees (Rasch, 2004). Promotion programs for competent employees are checked out through performance appraisal and inefficient workers can be demoted or