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Performance Appraisal

Douglass defines performance as appraisal a method of acquiring and processing the information needed to improve an individual employees performance and accomplishments. Newstom defines performance appraisal as the process of evaluating the performance of employees, sharing that information with them and searching for ways improve their performance. to

An evaluation of how well an employee performs his or her job compared to a set of predetermined standards. It is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.

According to Flippo, performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.

Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development.

Objectives of Performance Appraisal:

To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future.

To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.

To reduce the grievances of the employees.


Performance appraisal should be done majorly for the following tow purposes: 1. Administrative purpose 2. Self improvement purpose

Administrative purpose:

In order to have justified promotions and for placement of staff Performance appraisal helps in analyzing transfers and demotions. They help the management decide the wage and salary payment on the basis of the performance. Every individual needs certain amount if training and development. Performance appraisal indicates the areas in which an employee needs training and development. Performance appraisal is also required for personnel research. On the basis of the performance appraisal probation staff can also be confirmed. Performance appraisal facilitates communication between the superiors and the subordinates, thus it improves internal communication. Performance appraisal determines as to how effective the hr policies and the programs are in an organization.

Self Improvement of Staff:

Performance appraisal helps the both the organization and an individual to asses the critical attributes in terms of strengths and weakness. Performance appraisal also assesses effectiveness of placements. On the basis of performance appraisal, the employee can be further provided with counseling on the performance.

Performance appraisal provides career opportunities to the employees Performance appraisal also leads to potential assessment of an individual.


Employee being rated is called Ratee/Appraisee.Assessors are called Raters/Appraisers Immediate Superior is the best person to appraise. Subordinates can also assess their superiors. Peer evaluation. Client evaluation.