Performance appraisal is a process of evaluating an employees job performance against the established requirements of the job. It is a systematic and periodic process that measures an individuals work performance, strengths, weaknesses, relative worth to the organization, and future development potential. Performance appraisals are also called performance evaluations, performance reviews, development discussions, or employee appraisals.
Human resources (HR) departments typically create performance appraisals as a tool for employees to advance in their careers. They give people feedback on how well they are doing in their jobs, ensuring that they are managing and achieving the goals set for them and assisting them if they fall short. Performance appraisals come in many forms, and managers and HR staff responsible for these appraisals need to choose the best methods based on the size of their organization and what sorts of responsibilities the employees fulfill.
Companies use performance appraisals to determine which employees have contributed the most to the companys growth, review progress, and reward high-achieving workers. Performance appraisals are usually designed by HR departments as a way for employees to develop in their careers. They provide individuals with feedback on their job performance, ensuring that employees are managing and meeting the goals expected of them and giving them guidance on how to reach those goals if they fall short.
Performance appraisals are usually held annually in most companies. The process of performance appraisal in HRM creates a healthy competition between colleagues and helps employees compare and improve upon their skills if needed. It also provides a uniform platform to measure financial rewards, selection for promotions, or assignments to important projects for each candidate. The complete guide to performance appraisal in HRM can help organizations be more productive, more focused, and help authority figures make better decisions.
