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148 
here are three main easons for having an ppraisal system: To monitor the overall progress of the business.
Page 36
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. staff appraisal scheme actually rovides a framework for rneauring the performance of the usiness as a whole by assessing idividual staff against jointly greed targets that fit into the ampany's overall aspirations. For example, you might set an greed target for the percentage of }ads delivered on time or stateies to reduce damage to goods.
■ To develop the business to meet changing circumstances. is widely acknowledged that a tatic organisation will not surive and that a healthy organisaon is one that can adapt and hange in response to market )rces. This will often involve ftroducing new methods of Torking, developing new services nd ultimately changing the irection of the business.
In reality this can only be chieved by ensuring that staff re similarly able to adapt and be exible, perhaps even being strained in new sldlls. Appraisals hould also be developed to .spond to new circumstances.
■ To encourage and motivate employees taff are usually a business's lost expensive and most valuble asset. Their motivation and uccess will result in a similar erfortnance for the business. Regular meetings and informal hats praising, or noting shortomings, are all part of a good nanagement technique, but they re no substitute for being able to set reasonable targets that can then be measured.
A job that is either well done or botched should not be allowed to go unnoticed as the former may not be repeated while the latter may become the norm.
In these instances an appraisal system is not a substitute for regular feedback—but it is a longer term method of measurement, that will provide a better and more consistent picture of employee abilities.
The employees' perspectiv The value of performan( appraisal to the organisation fairly obvious, but your emplo ees are bound to ask you what's i it for them?
• Employees are recognised f( the value and worth they bring the organisation.
• They are able to contribute the development of the busine through participation.
• They are allowed, in fa encouraged, to develop their pe sonal skills.