What is Performance Appraisal?

Whether you're a beginner or an expert, you will find this Glossary useful.

Performance appraisal refers to periodic review and evaluation of an employee’s job performance (skills, achievements etc) and contribution to the company.

what-is-performance-appraisal


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 employee's workgroup 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 between 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.


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