Performance Appraisal

A performance appraisal is a regular review
of an employee's job performance and overall
contribution to a company. Also known as an
(annual review) performance review or
evaluation, or employee appraisal, a
performance appraisal evaluates an
employee's skills, achievements and growth.

Promotion

Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case.

Employees Development

The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes.

Communication

For an organization, effective communication between employees and employers is very important. Through performance appraisal, communication can be sought for in the following ways:
Through performance appraisal, the employers can understand and accept skills of subordinates.
The subordinates can also understand and create a trust and confidence in superiors.

Motivation

Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a person’s efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future.

Compensation

Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority.

Selection Validation

Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard.

Performance Appraisal

A performance appraisal is a regular review
of an employee's job performance and overall
contribution to a company. Also known as an
(annual review) performance review or
evaluation, or employee appraisal, a
performance appraisal evaluates an
employee's skills, achievements and growth.

Promotion

Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case.

Employees Development

The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes.

Communication

For an organization, effective communication between employees and employers is very important. Through performance appraisal, communication can be sought for in the following ways:
Through performance appraisal, the employers can understand and accept skills of subordinates.
The subordinates can also understand and create a trust and confidence in superiors.

Motivation

Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a person’s efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future.

Compensation

Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority.

Selection Validation

Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard.

Performance Appraisal Tools and Techniques

1-Ranking 7- Checklists
2-Paired Comparison 8- Graphic Rating Scale
3-Forced Distribution 9- BARS
4-Confidential Report 10- Forced Choice Method
5-Essay Evaluation 11- MBO
6-Critical Incident 12- Performance Test

Performance Appraisal

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