Performance Appraisal

Tuesday, July 20, 2010

      Performance appraisal is a vital area in the human resource management. Every employee in the organization wants to be appraised for the work he has contributed. Performance appraisal is defined as a means of evaluating the quality of the work done by an employee. It is the means by which, the required performance (fixed) is measured against the actual performance of an employee. The gap between the required and actual performance is analyzed. The strength and weakness of the employee is also analyzed in the performance appraisal.


      After analyzing the gap - the area where the employee needs to improve, the organization arranges for the required training. Performance appraisal is mainly done to evaluate the performance of an employee, to identify the training needs of an employee and to increase the monetary benefits for the employee. A positive performance appraisal results in increase in compensation, benefits, bonus, incentives, promotions etc, where as a negative performance appraisal leads to training, counseling, coaching etc. During performance appraisal, the past performance is taken into account and various ideas are generated to improve his capabilities in the future.  Performance appraisal is always seen with an optimistic approach since most of the employees get benefited out of it. In MNC organizations an employee gets a chance to interact with his manager every month to discuss about his work profile, improvements, drawback etc.

      There are many methods used to evaluate the performance of an employee. The widely used practice is the self appraisal form, 360 degree appraisal, appraisal from the managers etc. Generally an employee is asked to fill the self appraisal form to find out where he rates himself, later his or her manager reviews it and analyses the gap and discusses on the improvements. There are also arguments against performance appraisal since some employees feel that the feedback given by the managers are biased. But when compared, performance appraisal offers more good to an employee sans its negative effect.

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