Informal approaches are usually less time consuming but may result in richer performance conversations. Regardless of whether a formal or informal appraisal process is used (or both), individual performance needs to be appraised.įormal systems provide transparency, standardisation, trail of evidence for dismissal/disciplinary situations, clear links to organisational outcomes etc. On the other hand, a large organisation with several branches and several people making people management decisions will need a formal system to help with planning, consistency and employee development. For example, in a smaller organisation or where there are few opportunities for promotion or career development within the organisation, a formal system may be unnecessary. The approach taken will depend on the organisation’s circumstances.
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