What Is Performance Appraisal, and Why?

Performance Appraisal is usually considered to be the process and time when manager and employee sit down to review the employee's performance over the last year, or month, or even shorter time spans. The appraisal is based on results obtained by the employee in his/her job, not on the employee's personality characteristics. The appraisal measures skills and accomplishments with reasonable accuracy and uniformity. It provides a way to help identify areas for performance enhancement and to help promote professional growth. Performance Appraisal should not, however, be considered as the supervisor's only communication tool. Open lines of communication throughout the year help to make effective working relationships. During the performance appraisal meetings, a number of methods can be used to document, record, or summarize performance discussions, ranging from narratives, rating scales, critical incident summaries, etc. Usually there is an expectation that some sort of paperwork will result. So Performance Appraisal is probably the least important component of performance management. The periodic reviews help supervisors gain a better understanding of each employee's abilities.

The goal of the review process is to recognize achievement, to evaluate job progress, and then to design training for the further development of skills and strengths. A careful review will stimulate employee’s interest and improve job performance. The review provides the employee, the supervisor, the Vice President, and Human Resources a critical, formal feedback mechanism on an annual basis; however these discussions should not be restricted solely to a formal annual review.