Performance Appraisal

Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development.

Objectives of Performance Appraisal

The basic objectives of performance appraisal are as follows

• Acts as a tool for improving performance of the employee
• Maintaining records to determine compensation packages, wage structure, salaries raises, etc.
• Identifying the strengths and weaknesses of employees to place right person on right job.
• Providing feedback to employees regarding their performance and related status.
• Preventing internal conflicts and employee grievances

Process of Performance Appraisal

The process of performance appraisal may differ from one organization to another but the main steps involved in designing the performance appraisal system are as follows.

• Establishing performance standards
• Communicating the standards
• Assigning responsibility of appraisal
• Measuring and comparing actual performance
• Communicating the results of appraisal to the employees
• Setting up corrective actions