Performance Appraisal is the process of reviewing individual’s past productive activity to evaluate the contribution they have made towards attaining the organization’s objectives.


Performance Appraisal is a continuous review that focuses on both established human resources within the organization and new comers.


Its main purpose is to furnish feedback to organization members about how they can become more productive and useful to the organization in its ambitions and growth plans.


Advantages of Appraisal Systems:


  1. They provide systematic judgements to support salary increases, promotions, transfers, and sometimes even demotions & terminations.      


  1. They are a means of telling subordinates how they are doing and of suggesting needed changes in behaviour, attitudes, skills or job knowledge; they let subordinates know where they stand with the boss.



  1. They furnish a useful basis for the coaching and counselling of individuals by their seniors.


 Several Methods used for Performance Appraisals are:


  • Rating Scale
  • Employee Comparisons
  • Free form Essay
  • Critical form Essay


Guidelines for Handling Performance Appraisals:


  • Performance Appraisals should stress both Performance in the Position the individual holds and the success with which the individual is attaining organizational objectives.


  • Although conceptually separate, performance and objectives should be inseparable topics of discussion during performance appraisals.



  • Appraisals should emphasize how well the individual is doing the job, not the evaluator’s impression of the individual’s work habits. The goal is an objective analysis of performance rather than a subjective evaluation of habits.


  • Appraisals should be acceptable to both the appraiser and the appraisee, on the benefits for the individual as well as the organization.
  • Performance appraisals should provide a base for improving individual’s productivity within the organization by making them better equipped to produce.



Pitfalls in Performance Appraisals:


  1. Performance appraisals focus employees on short term rewards rather than on issues that are important to the long run success of the organization.
  2. Individuals involved in the performance appraisal view them as reward- punishment situation.
  3. The emphasis is wrongly placed on completing paper work, rather than really critiquing individual performance.
  4. Individuals view the process as unfair or biased.
  5. Subordinates react negatively when evaluators offer unfavourable comments.