Performance is an individual’s action toward any kind of activities. It shows how an individual exert his/her effort in work. So it is directly linked with productivity, efficiency and ultimately, with the achievement of organizational objectives.
Performance appraisal is the process of evaluating an individual’s effort on job, and take corrective measures if any deviation is found between actual and standard performance required for a job.
According to Casio, performance appraisal is defined as “ The systematic description of job- relevant strength and weakness of individual or group.”
Thus, performance appraisal is process of systematically evaluating performance of an individual with a view to meet prior objective of a job.
The Performance Appraisal Process
- Establish performance
- Communicate performance expectations to
- Measure actual
- Compare actual performance with
- Discuss the appraisal with the
- If necessary, initiate corrective
Use of Performance Appraisal
The basic uses of performance appraisals are as follows:
1. Reward management:
Performance appraisal can be used as a basis for reward allocation. Decisions as to who gets salary increased, promotion and rewards are determined by performance
2. Training and development decision:
Performance appraisal can be used for identifying areas where development effort are needed. In an organization, management needs to find out those individuals, who have specific knowledge or skill deficiencies.
This helps the management to take decision on training and development So to overcome such problems like skill deficiencies, performance appraisal can be used as a major tool.
3. Validation of selection test:
Higher score in selection test means higher performer. This can only be valid when and individual performance is evaluated and meets the expectation of
4. To evaluate and individual performance:
Performance of an individual play vital role in the achievement of an organizational goal effectively and Whether workers are putting their full effort on work or not can only be ascertained by certain evaluation. So performance appraisal helps in finding out the ability and performance relation and takes corrective action if necessary.