PERFORMANCE APPRAISAL.

RUNNING HEAD: PERFORMANCE APPRAISAL
Title: Performance Appraisal in Management
Name of Student:
Name of University:
Author Note:

1PERFORMANCE APPRAISAL
The process adopted by the management to review the performance of an employee and
his overall contribution in the company is known as the Performance Appraisal. The
performance appraisal is mainly designed with the aim of evaluating an employee’s skills, his
vision to grow and his achievements. It also analyses the lack of these aforesaid criterias in the
employee. The feedback shared with the employees on their work acts as a tool for justification
for the payments, incentives or even the termination decisions. Though generally, held annually,
the performance appraisal has no definite interval of occurring. It may occur annually, semi
annually or quarterly.
It is generally argued that an efficient use of performance appraisal tools can impart a
strong effect on various levels of organisation. It can have significant impact on the culture of the
organisation, morale of the staff and the engagement level of the employee. all these aspects play
a key role in enhancing the brand of the company and the retention of the chief talents within the
company. With the evolution of culture in workplace and changes in the working mode in the
organisation, it is a highly debatable fact whether performance appraisal is at all required. Many
organisations have even declared a regular discussion on the feedback, thus nullifying the
concept of a regular appraisal. However, it has been pointed that a regular appraisal is
responsible for the improvement of the performance of an employee. it also helps n creating a
focused culture and progressive outlook. The following can be considered to be the importance
of the performance appraisal system.
Recognisng and rewarding: A regular performance appraisal helps in the recognition of the
performances of the employees and rewarding them. according to Herzberg’s two factor theory,
recognition and reward is directly proportional to performance. The increase of salary or
incentives or promotions will motivate the employee to remain competitive and focused. It is not

2PERFORMANCE APPRAISAL
always necessary that the reward should be monitory. A positive feedback or success
highlighting also ensures an employee engagement.
Clearing new objectives: In a workplace with favourable culture the employees are included in
the organisational vision and they are aware of the goal and achievements of the organisation.
The discussions that takes place during a performance appraisal helps an employee to gauge their
individual needs and how that will cater to the greater business plan. The sense of belongingness
thus imparted among the employees, motivate them in taking up new challenges.
Progression and development: the progression opportunities provided by the appraisal by means
of pointing out the performance level and areas where working is required. Having a regular
check on the performance helps in identifying the problems and has scope for a quick solution.
Training and support: discussions on the performance help the employers to identify the
problems in an employee and opportunity to find out a positive solutions. Often additional
support in means of training has to be given for enabling the employees in giving the desired
outcome.
Having discussed the importance of performance appraisal it s necessary to focus on the
issues based on which appraisal is being done. Following can be the basic considerable things to
asses:
Trait Appraisal: it is important for the company to assess the physical as well as the
psychological characteristics of an employee. The organisation must look into the attributes like
dependability, helpfulness and punctuality. This helps an employer to assess the mental bent of
the employee to take up responsibility.