Chapter -1
Introduction
Performance appraisal
Definition of Performance appraisal
The process by which a manager or consultant examines and evaluates an employee’s work behavior by comparing it with preset standards, documents the results of the comparison and uses the results to provide feedback to the employee to show where improvements are needed and why, performance appraisals are employed to determine who needs what training and who will be promoted, demoted, retained or fired.
A performance appraisal (PA) is a method by which the job performance of an employee is evaluated. Performance appraisals are a part of career development and consist of regular reviews of employee performance within organizations.
Need for Performance Appraisal (PA)
Periodic reviews help supervisors gain a better understanding of each employee's abilities. The goal of the review process is to recognize achievement, to evaluate job progress, and then to design training for the further development of skills and strengths. A careful review will stimulate employee’s interest and improve job performance. The review provides the employee, the supervisor, the Vice President, and Human Resources a critical, formal feedback mechanism on an annual basis, however these discussions should not be restricted solely to a formal annual review.
Objectives of Performance Appraisal
Performance Appraisal can be done with following objectives in mind:
1. To maintain records in order to determine compensation packages, wage structure, salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on right job.
3. To maintain and assess the potential present in a person for further growth and development.
4. To provide a feedback to employees regarding their performance and related status.
5. To provide a feedback to employees regarding their performance and related status.
6. It serves as a