Performance Appraisal is the methodical assessment of the performance of employees and to understand the abilities of a person for further development and progress. It is also known as performance rating, performance evaluation, employee assessment, performance review, merit rating, etc.
The process of performance appraisal: There are three major steps in the performance appraisal process: identification, measurement, and management.
Identification: With identification, the behaviors necessary for successful performance are determined. The evaluators must determine what outputs, accomplishments, and skills will be evaluated. These standards should have evolved out of job analysis and job description.
Measurement: Measurement involves choosing the appropriate instrument for appraisal performance. In this stage, the actual performance of the employees is measured on the basis of information available from various sources such as personal observation, statistical reports, oral reports, and written reports.
Management: Management, which is the ultimate goal, is the reinforcing of good performance and the correction of poor performance. The feedback from the staff on the standards communicated to them must be obtained. If required, the standards may be modified or revised in the light of feedback obtained from the employees.