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Performance Appraisal | Meaning and Definition

What is performance appraisal?

Performance appraisal refers to the methodical assessment of employee performance and grasping the competencies and knacks of a person for prospective growth, success, and development. Generally, performance appraisal is performed in the following systematic ways:

  •   The supervisor estimates the employee pay and compares it with the plans and targets.
  •   The supervisor scrutinizes the factors at play behind the employees’ performance.
  •   Employers can guide the workers to optimize their performances.


What are the objectives of performance appraisal?

Performance appraisal is done to preserve records to determine salary raises, wage structure, compensation packages, etc. Furthermore, supervisors can gauge the weaknesses and strengths of individuals to assign them appropriate and the most fitting responsibilities. It is helpful in evaluating and maintaining the current potential of an employee for further development and growth.


Moreover, performance appraisal gives an opportunity to employees to know their performance status through constructive feedback. Thus, it can directly impact the working regime and habits of the workers. In an effort to crank up their performance appraisal score, they would strive to enhance their performance and productivity. Performance appraisal is also instrumental in reviewing and retaining training and other promotional programs in the workplace.


Benefits of performance appraisal

Performance appraisal helps supervisors and employers to create an efficient promotion program for employees. Those who are inefficient can be dismissed or eliminated. Furthermore, supervisors also come to understand the weaknesses and strengths of the employees. This knowledge helps them design training and development programs and policies.

Supervisors also resort to performance appraisal as a tool to chalk out compensation packages which include allowances, high salary rates, extra benefits, etc., for workers. This tool intends to assign worth to individual performance.

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