Performance appraisal is a systematic and objective process used to evaluate the relative worth and ability of an employee in performing their job. It emphasizes two key aspects: systematic and objective evaluation. All performances are assessed using consistent approaches, enabling comparisons between different individuals. This ensures that the appraisal process is conducted periodically according to a planned schedule, rather than relying on chance, making it a systematic and objective system.
Objectives of Performance Appraisal:
- Salary Increase:
Salary increments typically depend on an employee’s job performance. The extent of salary increases may vary based on individual efficiency and effectiveness. - Promotion:
Performance appraisal plays a crucial role in the decision-making process for promotions. Promotions are often based on how well employees perform their jobs, and continuous evaluation is conducted to assess their performance. - Training and Development:
Performance appraisal aims to identify an employee’s strengths and weaknesses. This information can be used to design training and development programs that address any areas of weakness and help employees improve their skills and abilities. - Feedback:
Performance appraisal provides employees with feedback on their performance. By being aware of their weaknesses, employees can strive to perform better and work on overcoming their shortcomings. - Motivation:
Performance appraisal creates a sense of pressure on employees to enhance their performance. When employees are aware that they are being evaluated based on specific factors, they tend to exhibit more positive behavior and work towards improving their performance.
By implementing an effective performance appraisal system, organizations can align employee goals and expectations, identify areas for improvement, and provide meaningful feedback that supports professional growth and development.