Process of performance appraisal are:

  1. Establish performance standard.
  2. Communicate performance expectations to employees.
  3. Measure actual performance.
  4. Compare actual performance with standards.
  5. Discuss the appraisal with the employees.
  6. If necessary, initiate corrective actions.

Uses of performance appraisal are:

  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 evaluation.
  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 job.
  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.