A performance appraisal , also known as a performance review , performance appraisal , [1] (career) development discussion , [2] or employee appraisal [3] , is a method by which an employee ‘s performance is documented. and is evaluated. Performance appraisal is a part of career development and includes regular review of employee performance within organizations .

Performance Appraisals Are Often Conducted By An Immediate Manager 

such as a line manager or front-line manager (Tysco, 2020]). Annual performance appraisal reviews have been criticized (Evans & Turish, 2017) for providing too little feedback to be useful. do, and argue, performance reviews in general do more harm than good. It is an element of the principal-agent framework, which describes the information relationship between employer and employee, and in this case the direct impact and feedback received when performance is reviewed.

Performance Appraisal – Introduction

The world is an economic jungle. So every organization has to fight for survival. Only the fittest will be able to move forward with confidence.


To stay on top, organizations are forced to put their best foot forward. Rare inputs have to be channeled in the best possible way. This is where the contribution of human resource is going to make a big difference. Material and financial resources should be put to productive use. And this is possible only when an organization is able to attract and retain talent. Appropriate rewards should be instituted. Jobs with stretch pulls and challenges should be tailored to the employee’s expectations. Growth opportunities should be implemented. The best performers should be selected for appreciation and their contribution should be rewarded appropriately.

All of this can happen only when the organization is able to set challenging goals, measure actual performance, identify gaps, and find myriad ways and means to continually improve employee productivity.


It is simply not enough to measure the job relevant strengths and weaknesses of the individuals and teams working in an organization through annual performance appraisal plans. Organizations need to go a step further to ensure employees consistently perform well.

This is where performance management matters, as it demands the willingness and commitment of people working harder and harder to meet the company’s strategic objectives – on a daily basis.

Meaning Of  Performance Appraisal

In the rapidly changing trend towards globalization, today many organizations are working hard to modernise themselves. One of the most important hallmarks of a modern organisation is a performance appraisal system.

Performance appraisal is the systematic evaluation of an individual with respect to their performance on the job and their potential for development. It is defined as “the process of evaluating the performance of an employee with reference to his needs”.


According to Fippo, performance appraisal is “a systematic, periodic and so far as humanly possible, an unbiased rating of an employee’s excellence in matters relating to his current job and his abilities for a better job”.

o quote Dale Yoder, “Performance appraisal includes all the formal procedures used to evaluate the personality and contribution and potential of group members in a formal organization. Securing the information needed to make correct and objective decisions on employees is an ongoing process”.

 Performance appraisal is also regarded as “the process of establishing or judging the value, excellence, qualities or status of an object, person or thing”. Often, such evaluations are labeled as “ratings”, where a person, after comparison with another, is ranked or rated as “excellent, normal or average”.

Such ratings are commonly used to ascertain the eligibility of an employee for promotion. Therefore, employee evaluation or rating is an evaluation of the relative value of an employee’s services to the enterprise at his job.


Performance appraisal is also known as employee appraisal, employee efficiency rating, performance rating, competency rating, employee development program, development report, personnel development or progress record or report, personnel performance record, employee progress report, employee service rating, personnel rating, employee is referred to as. Capacity rating, and they all mean the same thing.

It is a systematic, systematic and objective way of evaluating the present and potential utility of employees to the organisation. As stated in the beginning, the performance appraisal system is considered to be the hallmark of modern organizations and not only in western countries but also in India more and more organizations are trying to systematically evaluate the performance of their employees.

It is believed that a formal appraisal of a person’s performance began in the Wei dynasty in China, with the royal family interpreting the performance of members of the official family.

People also believe that the performance appraisal system probably started with the East India Company, which started keeping some sort of record in the form of a “confidential role” – CR government organisations still had access to their confidential reports. The CR word for employeeS

How to Write a Performance Appraisal

Performance appraisals, also called performance reviews, are used to evaluate an employee’s work. Many performance appraisals are completed by the employee’s manager, although some employers may ask employees to evaluate their own work or the work of others and complete self-appraisals. Whether you’re writing reviews of your employees’ work or your own, learning how to write performance reviews can help you clarify the roles and responsibilities of everyone at your place of bu Update the details of that status.

Before you begin performing an employee’s performance review, you should double-check that employee’s details in your employment files. If the position’s requirements or functions have changed at all over the years, that description will need to be updated. It would be unfair on the employee to evaluate the old posts on the basis of their details.

Identify the work the employee has done and the work they are expected to do this year, not previous years. Update the description to include any special skills or knowledge required to perform the job and/or any specific tools or equipment required.