Training and development programme

Data base: it provides a valid data base for personal decisions concerning placements pay promotion transfer etc. appraisal also makes the employee aware of his key performance areas. Permanent performance appraisal records of employees help management to do planning without relying upon personal knowledge of personnel's supervisors who may be shifted.

Personnel development: performance appraisal can help reveal the causes of good and poor employee performance. Through discussions with individual employees a line manager can find out why they perform as they do and what steps can be initiated to improve their performance.

Training and development programme: by identifying the strengths and weakness of an employee appraisal serve as a guide for formulating a suitable training and development programme to improve his quality of performance in his present work. It can also inform employees about their progress and tell them what skills they need to develop to become eligible for pay rises and promotions.

Promotion decisions: it can serve as a useful basis for change or promotion. By establishing whether the worker can contribute still more in a different or a higher job. It helps in his suitable promotion and placement. If relevant work aspects are measured properly it helps in minimizing feeling of frustration of those who are not promoted.