Performance appraisal is also called a performance review. It is a procedure through which an employee’s performance and productivity at work are checked upon and his contribution to the company’s success is being determined. Performance appraisal can also be said to be an annual review of the employee’s performance.
Performance appraisal is done to help the managers give the right work to the right employees based on their talent and skillset. Quite often, employees want to be aware of their performance details and compare the same with the ones they are working in a team or in the organization so that they can understand how to be a better employee at work. Hence, every company should form a basic and good performance appraisal system for the betterment of the company and its employees.
Employees’ worth and contribution to the organization gets evaluated in the performance appraisal system and that is its basic goal. Important factors of performance appraisal are attitude, work quality, work output, attendance, and effectiveness at work. A Human Resource Department Manager takes charge of the factors such as attendance, work output, and effectiveness.
The procedure of performance appraisal includes setting goals for performance standards, create measurable goals, measure the actual output and its quality, compare the work output with the earlier decided targets and standards, discuss the performance with the employees such as meeting and not meeting and exceeding the expectations at work, take the needed actions to correct the performance and set clear goals for the next year.
A systematic performance appraisal system is beneficial for both the employers and employees so that they understand what are the areas of improvement to give quality work output. For example, if any training or guidance is required to improve particular skills to perform in a better manner. The appraisal system also helps the management to decide how to place the right employees at the right jobs based on the abilities in certain areas.