Performance Appraisal

MEANING AND DEFINITION

1. Performance appraisal is the periodic, formal evaluation of employee performance for the purpose of making career decisions.'

Performance appraisal is a formal, structured system of measuring and evaluating an employee's job related behaviours and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organisation and society all benefit.'

3. Performance appraisal involves the identification, measurement and management of human performance in organisation.3

USES OF PERFORMANCE APPRAISAL

Performance appraisal serves several purposes of the organisations. The main uses of performance appraisal are as follows:

1. Administrative use

Performance appraisals arc used administratively whenever they are the basis for the personnel decisions like promotions, transfers, demotions, terminations and rewards.

2. Developmental use

Performance appraisal helps to identify the need and areas for further training and development of the employees.

3. Compensation use

Performance appraisal provides a rational basis for constructing a system of rewards, benefits or bonus.

4. Feedback use

It provides feedback to the employees and informs them where they can improve their performance.

5. Reduce grievances

With the help of proper feedback, the employees receive information about their performance thus reduces the grievances among the employees.

6. Improvement in supervision

A systematic performance appraisal system in organisation makes supervisor always aware and alert about their subordinate performance, as they have to fill the rating forms periodically.

7. Database

Performance appraisal documents and records protect the employer from the charges of discrimination, hiasness and favouritisim. These documents may be needed for legal defense.

8. Effectiveness of earlier stages

Performance appraisal acts as mean of evaluating the effectiveness of recruitment, selection, placement and induction systems in an organisation.

9. Career planning

Performance appraisal records provide a systematic and rational base for management in the career planning of its employees.

10. Motivation

Fair performance appraisal systems help in the assessment and recognition of performance levels of employees. This motivates employees to improve their performance.