A performance appraisal used in the organization is a regular review of employees’ performance to verify their contribution to the company’s growth. It evaluates the skills, growth, achievement, or failure of the employees while performing a particular task or project. The performance appraisal is mostly used to justify and initiate the decisions related to promotions, pay hikes, bonuses, and termination of employees.
Performance appraisal has many names across organizations. You may call it performance evaluation, some prefer performance review, merit rating, or annual review. It all means the same. This process is carried out to identify the inherent qualities of an employee and how they are working towards performance improvement. It examines the abilities and level of competency of an employee for their future growth and development in the organization. Performance appraisal aims at ascertaining the value of an employee and his/her offering to the organization.
Also, See: Self Appraisal
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