Performance Appraisal: Definition, Features, Types, Objectives, Uses & Methods

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What Is Performance Appraisal?

The systematic process that measures an individual employee’s job performance and its strength and weakness in relation to achieving organisational objectives is called Performance Appraisal.

It ensures to manage and bring into line or organisation resources that will determine the sucess or failure of a business enterprise.

In other words performance appraisal is a process of evaluating an employee’s performance of a job in terms of its requirements.

Features Of Performance Appraisal

For the sake of clarification some of the most important characteristic or features of Performance Appraisal are discussed below:

Analysis Of Individual Performance

Performance Appraisal is considered as a tool used for all round development of the employee and organisation. It is considered with the assessment of individuals’ performance in a systematic way.

It also measures the employees leadership abilities, quality of output, supervisional co-operative, quality etc.

Review Of Performance

Performance Appraisal is considered as a part of career development and consists of regular reviews of employees performance.

It enables an organisation to exercise better control and take cooperative action and measures when any deviation is found.

Systematic AnalysisIt is a systematic evaluation of the performance of employees in order to understand the abilities of each and every person engaged in organisation. It enables the superior;

To measure the pay of employees and compare its performance.

To analyse the factor behind work performance.

To guide the employees for better performance.

Base Of Managerial Action

The Performance Appraisal enables the management body to identify the proper and efficient performance of an organisation. It help to take various decision regarding:

Counselling of employees

Demotion of employees

Dismissal of employees

Decrease in pay etc.

Objectives Of Performance Appraisal

Enhance Performance

The primary objective of performance appraisal is to enhance the efficiency and performance of employees. It aims at identifying the performance of employees. It aims at identifying the performance requirements and providing feedback accordingly.

Producing Standard Work

Another objective of performance appraisal is to assist the employees in producing Standard work. It makes them know the standard fixed by organisation and demand of customers in order to produce as per standard.

Developed needs Of Employees

The evaluation of training and development of employees performance is considered as another objective of the performance appraisal. It helps to evaluate the need for promotion and organising training programmes accordingly.

Identifying Strength & Weakness

Another most important objective of performance appraisal is to identify Strength and weakness of employees. It enables them to place their workplace in the right job according to their skill, efficiency, ability, experience etc.

Motivate the employees

The motivation of employees for fulfilment of business goals is another objective of performance appraisal. It helps the employer to motivate their employees towards predefined business goals.

Providing Feedback

Another objective of performance appraisal is to identify the requirement of employees and provide feedback accordingly. It ensures smooth running of organisation and achieving objectives economically.

Analysis Of Compensation Package

Performance Appraisal also aims at maintaining records of compensation packages and hike of salary structure etc. It determines and maintains wages and salary structure on the basis of performance.

Personal Goal

The performance appraisal enables us to know the shortcoming concerned with each employee in performing work. It helps them provide feedback and suggest corrective actions for better performance. It indirectly needs a personal goal by increasing knowledge and skill.

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