Performance Appraisal

A performance appraisal is a formal process used to assess an employees effectiveness and productivity and serves both administrative and developmental purpose. Also known as an annual review, performance evaluation or employee appraisal. Performance appraisal evaluates an employees skills, achivements and growth. To collect performance appraisal data, there are three main methods- objective production, personnel, and judgemental evaluation.

Earlier, performance appraisal has been conducted annually (long- term appraisals) however many companies now have shorter cycles( six months, quarterly).

Objectives of Performance Appraisal

1. To identify the strength and weakness of employees on job.

2.To maintain records to determine salary hike, wages etc.

3.To provide feedback to employees about their performance.

4.To see the present potential in a person for growth and development.

5.To retain the promotional and other training programmes.

Advantages of Performance Appraisal

Documentation: Performance appraisal provides a document of employee performance over period of time.

It helps the manager to meet and discuss performance with an employee.

Feedback: Employees need feedback about their work,