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Performance Appraisal

Performance appraisal is a formal exercise in which organization evaluates its employees, in terms of contribution made towards achieving organizational objectives. It evaluates their strengths and weaknesses in terms of attributes and behaviours for meeting the organizational objectives.

To appraise the performance of employees on continuous or intermittent basis and providing them the feedback is called performance appraisal.

“Performance appraisal is the process of defining expectations for employee’s performance; measuring, evaluating and recording employee performance relative to those expectations; and providing feedback to the employee.”

Ever y managers perform the task of appraising and evaluating his employees informally. Informal evaluation, however, is not enough to arrive at realistic and correct assessment of the worth of an employee in absolute or relative terms. The ultimate goal of evaluation programmed is to make the employee more valuable to the company. A proper evaluation and appraisal system can be valuable to the company.

For this, the performance evaluation    programmed should involve the study of employee (his habits, aptitude and skills) and his work recorded (his efforts and accomplishment).

Evaluating employees is a complex task because they perform a variety of activates and different work situation require different skills. They have different personal qualities which thy exhibit in different work areas. It is, thus, prate that origination a have should monitor system and develop a performance appraisal system to evaluate their work performance.

Performance appraisal system involves stetting performance standards and comparing actual performance with the standards. Comparison of actual performance against standards enables the managers to know whether or not employees have contributed towards corporate profits.

It also helps in the following areas:

(i)    Developing inter-personal relationships between manager and his team.
(ii)    Motivating employees to achieve their targets.
(iii)    Identifying themed for training the workforce.
(iv)    Improving use o forking tools like demonstration, material  working documents etc.
(v)    Determining and re-allocating employees. Territories and work assignments.
(vi)    Determining sound compensation ad incentives plans for the employees.

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