Performance appraisal systems solve the review process problem—normally a formidable and cumbersome task—by making it both efficient and effective for managers and employees. HR often gets bogged down with the process, and managers are often untrained in delivering effective reviews that actually impact workforce performance and help grow the business.
But there's a much bigger business impact to be had from an online performance appraisal system than simply time savings—by centrally locating the performance appraisal information within a formal framework, managers can more easily communicate business strategy and create measurable goals for their employees that will support overall company objectives. This, in turn, gives management the tools to measure individual performance throughout the organization and identify top performers for further development and establish a pay-for-performance compensation plan.