What is the role of performance standards in performance appraisal?

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Performance standards play a crucial role in performance appraisal by establishing clear and objective criteria for measuring employee performance. By defining specific benchmarks and expectations, performance standards help ensure that evaluations are consistent, fair, and based on observable behaviors and outcomes rather than personal opinions or biases.

Setting performance standards allows both managers and employees to have a clear understanding of what is expected and how success will be measured. This clarity is essential for guiding employees toward achieving their goals and objectives, as well as providing a basis for constructive feedback during appraisal discussions. When performance is assessed against well-defined standards, it increases the likelihood of accurate assessments and facilitates the identification of areas for improvement, ultimately supporting employee development and organizational goals.

Consequently, the correct answer highlights the foundational role that established performance criteria play in the performance appraisal process, ensuring that evaluations are meaningful and actionable.

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