Performance appraisal: What it is, Methods & Advantages

Performance appraisal: What it is, Methods & Advantages

Organizations use performance appraisal as a critical process to evaluate the performance of their employees. It involves a systematic review of employee performance, including their strengths, weaknesses, and room for growth. This process can significantly impact the employee’s performance and career development as well as the organization’s overall success.

This blog will go over the definition, objectives, process, methods, advantages, and disadvantages of performance appraisals.

What is performance appraisal?

Performance appraisal is defined as a process that systematically measures an employee’s personality and performance, usually by managers or immediate supervisors, against predefined attributes like skillset, knowledge about the role, technical know-how, attitude, punctuality, and so on.

Performance appraisal has many names across organizations. Some call its performance evaluation, and some prefer performance review, merit rating, annual performance review, etc.

This process is carried out to identify the inherent qualities of an employee and the abilities and level of competency of an employee for their future growth and development and that of the organization they are associated with. It aims at ascertaining the value of an employee and his/her offering to the organizational performance.

Performance appraisals help managers and supervisors place the right employee to do the right job, depending on the skill set they possess. Without an ounce of doubt, every organization needs a robust performance appraisal process.

There are various methods that managers and supervisors use to evaluate employees based on objective and subjective factors. However, it can get a bit tricky, but to effectively evaluate an employee, both factors are essential.