Approaches To Performance Appraisal

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Approaches to Performance Appraisal

There are two approaches to measure the performance of employees:
1.    Informal Approach
2.    Formal Approach

1.    Informal Approach :

This approach of performance appraisal measures the work performance of employees on a continuous basis. It continuously informs them about how well they are ding. Managers inform the subordinates of the desirable and undesirable attributes of their work activities or the subordinates themselves go and ask the managers about it. This helps in immediate detection and rectification of mistakes.

2.    Formal Approach :

Rather than assessing employees’ performance on a continuous basis, formal approach conducts performance appraisal at regular intervals to rank the employees on the basis of their merit. This helps managers find candidates suitable for promotions. Those who are not performing up to the mark may be transferred to other departments.

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