What is Performance Appraisal?

A performance appraisal is a systematic evaluation of an employee's job performance, contributions, strengths, and weaknesses within a specified timeframe.

Definition

A Performance Appraisal is a formal process used by organizations to assess and evaluate an employee's performance in relation to their job responsibilities and established goals. It involves providing feedback, identifying areas for improvement, and recognizing achievements. This process often includes setting goals, conducting regular reviews, and providing opportunities for professional development.
The appraisal aims to improve individual and overall organizational performance, fostering employee growth and aligning individual objectives with company strategies.


Impact on the organization

Performance Appraisals significantly impact employee motivation, productivity, and retention. Effective appraisals help identify training needs, offer constructive feedback, and support career development, which leads to a more engaged and high-performing workforce.
Regular appraisals also allow organizations to make informed decisions regarding compensation, promotions, and terminations.


Key takeways for Performance Appraisal

  1. Set clear, measurable goals at the beginning of the appraisal period.
  2. Provide regular feedback, not just during formal reviews.
  3. Focus on both strengths and areas for development.
  4. Use objective data and examples to support evaluations.
  5. Collaborate with employees to create development plans.

Curated related readings

Synonyms for Performance Appraisal : Performance review; Employee evaluation; Performance assessment; Merit review;

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