If there is no fair evaluation standard system, management will be corrupt, grass-roots morale will drop, work efficiency will be reduced, and worthless labor costs will be brought to enterprises.
Performance appraisal also has the function of achieving management by objectives. By encouraging and mobilizing the enthusiasm of employees, allowing employees to participate in the formulation, inspection and evaluation, and realizing the system of employee self-management, the cost of internal management can be saved for enterprises. Management by objectives is very popular at home and abroad.
The third advantage is that performance appraisal can ensure the fairness of employees' salary. Performance management is to transfer the company's strategic objectives and business objectives to departments and employees, and achieve them through the efforts of departments and employees. Performance management includes organizational performance management and employee performance management. The former is also called organizational performance management, while the latter is generally called employee performance management.