Performance appraisal — also known as a performance review or evaluation — is a structured process where an employee's work performance is assessed, typically by their manager or HR. The goal is to evaluate how well the employee meets job expectations, contributes to company goals, and grows in their role.

Let’s break it down:

🎯 Objectives of Performance Appraisal

  • ✅ Evaluate performance — Understand how an employee is doing.
  • 🛠️ Identify strengths and weaknesses — Pinpoint areas for improvement.
  • 🔥 Set goals — Define new objectives for the upcoming period.
  • 💬 Provide feedback — Encourage open communication between employees and managers.
  • 🚀 Support career development — Determine promotions, raises, or training needs.
  • 🧠 Boost engagement — Employees feel more valued with constructive feedback.

🛠️ Common Methods of Performance Appraisal

  1. 360-Degree Feedback:

    • Feedback from managers, peers, subordinates, and even customers.

  2. Self-Appraisal:

    • Employees reflect on their own performance.

  3. Management by Objectives (MBO):

    • Employee and manager set specific, measurable goals together.

  4. Behavioral Checklists:

    • A list of behaviors and tasks that are checked off based on whether they were achieved.

  5. Ranking System:

    • Employees are ranked from best to worst — though this method can be controversial.

  6. Critical Incident Method:

    • Focuses on key positive or negative events that define an employee’s performance.

🔥 Key Elements of a Good Appraisal

  • Clear criteria: Performance standards should be well-defined.
  • Regular check-ins: More than once a year ensures continuous growth.
  • Balanced feedback: Praise strengths, but address weaknesses constructively.
  • Action plans: Set goals for development and improvement.
  • Documentation: Keep records to track progress over time.