Performance appraisal refers to periodic review and evaluation of an employee’s job performance (skills, achievements etc) and contribution to the company.
Performance appraisal definition
Performance appraisal refers to periodic review and evaluation of an employee’s job performance (skills, achievements etc) and contribution to the company. They can be conducted whenever but tend to be annual, semi-annual or quarterly.
Performance appraisals are a way for companies to determine which employees have contributed the most to the company so they can reward them accordingly.
Performance appraisal types
• Self assessment: when employees rate their job performance and behavior.
• Peer assessment: when an emloyee's work group rates his/her performance.
• 360-degree feedback assessment: when there's a combined input from an employee, hi/her supervisor and colleagues.
Disadvantages of performance appraisal
- Difficult to differentiate individual and organizational performance.
- Distrust of the appraisal can lead to issues between subordinates and supervisors.
- Can lead to the adoption of unreasonable goals that demoralize workers.
- May lead to unfair evaluations in which employees are judged not by their accomplishments but by their likeability.
- May lead to managers giving underperforming staff a good evaluation to avoid compromising their relationship.
Explore More Terms & Definitions
- Performance Planning
- Full-time equivalent (FTE)
- Total Compensation
- Action-reflection learning (ARL)
- Diversity Training
- Piece Rate
- Merit pay
- Fair Representation
- Job Offer Letter
- Employer Brand
- Administrative Services Only
- Competency Modeling
- Unfair labor practice (ULP)
- Good Faith Bargaining