A performance appraisal (PA), also referred to as
a performance review, performance evaluation, (career)
development discussion, or employee appraisal is a
method by which the job performance of an employee is
documented and evaluated.
The process by which a manager or consultant :–
step-1 : examines and evaluates an employee's work
behavior by comparing it with present standards,
step-2 : documents the results of the comparison, and
step-3 : uses the results to provide feedback to the
employee to show where improvements are needed and
Performance appraisals are employed to determine
who needs what training, and who will be promoted,
demoted, retained, or fired
It must be relevant it should only measure behaviors that
are relevant to the successful job performance and not any
other personal traits.
It should be acceptable to all the performance standards
as well as the appraisal methods should be developed by
joint participation and joint collaboration.
It must be practical, sound, clear and unambiguous, so
that all parties 'concerned understand its implications.
It should be reliable, dependable, stable and consistent.
High reality is essential for correct decision making and
valid action studies: It should be sufficiently scientific so
that if an employee is evaluated by two different
evaluators, then the result should be significantly the
It must be able to objectively differentiate between a
good employee and an ineffective employee. Rating an
employee "average" does not adequately the degree of
effectiveness. Hence the technique must be sufficiently
sensitive to pick up the differences between an effective
and an ineffective employee
There are few more characteristics of
an effective performance appraisal
Objectives should be clear : The objectives of appraisal
should be clear and specific. An effective performance
system will always have specific appraisal attributes to
match the employee’s job description.
Data should be valid and reliable : An effective
performance appraisal system provides data that is
consistent, reliable and valid. It supplies data according
the objective that serves the purpose of performance
appraisal and succession planning.
Performance criteria should be well defined : Effective
performance appraisal has standard appraisal forms, rules and
appraisal procedures. It will have well defined performance
criteria and standards.
Economical and less time consuming : Effective
performance appraisal systems are designed to be economical
and less time consuming to bring maximum benefits.
Should initiate follow up : A post appraisal talk should be
arranged for employees to get feedback from their managers. It
also helps the organization to learn about the problems and
difficulties the employees might be facing and discover suitable