This is a very popular term in Human Resource Development domain. Performance appraisal is made of two words, performance and appraisal. We will dive into the details of both the terms first and then we will discuss the definition of performance appraisal.
Performance
Performance is a term for effectiveness and efficiency combined. Effectiveness is a measure of the completion of goals and targets. Efficiency, on the other hand, is the measure of how much inputs have been taken for a certain output. It is a ratio of input-output.
Appraisal
An appraisal is the evaluation of an individual on certain parameters like his/her behavior, attitude, quality of work, efficiency as compared to others, etc.
Performance Appraisal
Performance appraisal is a system to evaluate the performances of individuals and categorize them after assessing. This is a systematic process that intends to reward individuals based on good performance or provide some training etc for average and poor performance.
Some definitions are quoted below-
“Performance appraisal is systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development”
Dale S. Beach
“It is the process of evaluating the performance and qualifications of the employees in terms of the requirements of the job for which he is employed, for purposes of administration including placement, selection for promotions, providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally.”
Heyel
“Performance appraisal is a formal, structured system of measuring and evaluating an employees job, related behaviour and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organisation, and society all benefit.”
Randall S. Schuler
Objectives
- Feedback to employer
- Feedback to employees
- Assessment of skills
- Identifying the strength and weakness of the workforce
- Promotions and salary hikes
- Determining if there is any training required