Login or Register

  Welcome: Guest

Home >> Article >> Education >> Others >> Post New Article Bookmark and Share

Significance of Performance Appraisal and Approaches of Performance Appraisal

October 10, 2011  by: rekhas  Points: 12   Category: Others  Earning $0.75   Views: 728

Main reason of performance appraisal is- to positively influence the organization development and employee performance. Moreover, performance appraisals also help in decisions on pay hikes, planning future goals, promotions of employees and considering training and development activities for employees.


Performance appraisal is the method by which organization measures employee performance by evaluating and recording actually employee performance against predetermined standards. Then, based on this information, managers provide critical and constructive feedback to the employees. Main reason of performance appraisal is- to positively influence the organization development and employee performance.

Moreover, performance appraisals also help in decisions on pay hikes, planning future goals, promotions of employees and considering training and development activities for employees. Other objectives of appraisals include- employee feedback on work done, improving performance, identifying potential skills, decisions on promoting employees, compensation planning, recruitment planning and validating selection process of employees.

Formal and Informal Appraisals

In informal appraisal, manager mentions particular job was done poorly or well soon after job was performed or during the performance. In informal appraisal, constant feedback is provided regarding employee performance. Close interactive relation between behavior and feedback. It encourages desirable professional behavior and prevents undesirable behavior.

Formal Appraisal

Formal appraisals take place annually, semi-annually or on systematic basis. It involves evaluating employees not only on present performance but also on ability to handle different types of tasks in future. Four basic approaches for formal performance appraisals are-

- Superior Rating Subordinates - Here, superiors rate performance of their subordinates. It is the most common approach followed in most organizations.

- Group of Superiors rating Subordinates - a managerial committee or a group of managers use individual rating forms to rate a subordinate. It can be more effective than first method since it contains more feedback.

- Peer Assessment - Here, the colleagues or peer group rates the employee. People working at same levels need to rate one another. It is a rare method, since it is highly subjective.

- Subordinate Rating Managers - Here, subordinates rate the managers for their performance.

Another approach other than these four methods is the "360 degree appraisal" where peers, subordinates and managers evaluate an employee's performance. This is more like a combination of all four methods mentioned above.

The effectiveness of formal appraisal system depends on quality of techniques put to use. These include standards, information and corrective methods.


Standards are criteria on which employee performance is measured. Management should pay adequate attention while defining standards. Employee goals should align with that of the organizational goals.

Information needed to appraise an employee is available through sources, schedules and other methods like- superiors, subordinates feedback, individuals outside the environment, suppliers, channel partners etc.

Schedule of Appraisal

Time and frequency of appraisal depends on situation and aim of appraisal. If appraisals happen too often, then the employee is unable to use the feedback to improve performance. Appraisals should be like continuous processes that focus on attaining organization goals as well as personal development of the employee.

Appraisal Methods

The best and simple method to gather information for appraisal includes manager's observations about subordinate employee performance. However, it can sometimes be subjective and influenced by emotions. Other methods include filling forms by managers. These forms are documents that evaluate employee performance for the appraisal period. It can be more objective. New performance rating methods include graphic rating scales and behavior anchored rating scales.

Corrective Action or Final Stage

After assessing performance and evaluation completes, if performance falls below set standards, corrective action is mandatory. It includes training and development programs that focus on performance improvement.


No response found. Be the first to respond to this post

Post Comment

Please Log In  to post comment

Related Resources

Swan and its mythological significance
The article describes the swan, which is a beautiful water bird, and its significance in mythology.

How to Fix Your Slow Performance Computer
This article provides you simple ways to fix your computer running slow. You can get it back to normal by just understanding this article. Always keep your computer in its normal running condition to avoid any inconvenience in your work.

Scorpion Performance -Review of High Performance Engine Parts
Make the world safer, "Scorpion performance of the company, is a manufacturer of high quality parts and a high performance engine, the Scorpio label has become a word, not just the U.S. but to other around the world.

Common Causes of Slow Computer Performance
This article provides you the most important information about computer performance and the reasons why a computer runs very slowly. It also gives you a broad and detailed information on how to maintain your computer in its most stable and functional way.

Improving job performance with Management Methodologies
Time is always a reality, especially in the workplace. Improving productivity in the workplace is all about the execution of the event, the maximum of its available resources, resulting in an efficient and effective plans and decisions.

Latest Resources From The Same Category

To create study interest in children
Almost all children are lazy in study. Here are some tips for parents and teachers how to create study interest in children.

Writers Block - The Inside story
Writers block refers to a condition where the writer generally loses the ability to write or concentrate on their writing work, thereby unable to produce any new work.

Which Time Table is Right and Best for Studies for Students?
Time table for studies, to not only excel in exams; but also needed to thoroughly understand, learn, remember each subject of studies for good writing skills to write in exams, what you have learn. But, that is one aspect of why time table is necessary.

Indian Judiciary - in need of reforms
As things stand today Indian judiciary needs to reform quickly , so that there is more accountability and fairness and more importantly make sure that people do not lose faith and trust in the legal system of our country

Objective and Subjective: A discussion on the differences
Students always here these words "Objective" and "Subjective". A look at the differences between "Objective: and "Subjective".


Top Performers     Top Contributors     Share and Earn     Terms of Service    Privacy Policy     Contact Us