Performance Appraisal: Meaning And Types Of Appraisal

Abhishek Dayal
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Performance appraisal

Performance appraisal, also known as performance evaluation or performance review, is a systematic process of assessing and evaluating an employee's job performance and productivity in relation to predetermined goals, expectations, and job requirements. It involves gathering feedback, measuring performance against established criteria, and providing constructive feedback to employees. Performance appraisals serve several purposes within an organization, including:

1. Feedback and Communication: Performance appraisals provide a formal mechanism for managers and supervisors to provide feedback to employees about their performance, strengths, areas for improvement, and overall contributions to the organization. It facilitates open and constructive communication between the employee and the supervisor.

2. Goal Setting and Alignment: Performance appraisals help align individual goals and objectives with the broader organizational goals. The process often involves discussing and setting specific, measurable, achievable, relevant, and time-bound (SMART) goals for the upcoming performance period.

3. Performance Measurement: Performance appraisals involve assessing an employee's performance against predetermined performance criteria, such as key performance indicators (KPIs), job competencies, and behavioral expectations. It provides a quantitative and qualitative assessment of how well an employee is meeting job requirements and expectations.

4. Performance Recognition and Rewards: Performance appraisals can be used to recognize and reward employees who have consistently performed well and achieved their goals. It helps identify high-performing employees who may be eligible for salary increases, bonuses, promotions, or other forms of recognition.

5. Performance Improvement and Development: For employees who may be struggling to meet performance expectations, performance appraisals provide an opportunity to identify areas for improvement and develop performance improvement plans. It enables supervisors to offer support, training, mentoring, or additional resources to help employees enhance their performance.

6. Career Development and Succession Planning: Performance appraisals are often used as a basis for identifying high-potential employees for career development opportunities and succession planning. By assessing an employee's performance, skills, and potential, organizations can identify individuals who are ready for additional responsibilities or leadership positions in the future.


The performance appraisal process typically involves several steps, including:

Setting performance expectations and goals: Establishing clear performance expectations and goals at the beginning of the performance period.

Ongoing feedback and coaching: Providing regular feedback and coaching to employees throughout the performance period to support their development and address any performance issues in a timely manner.

Performance evaluation: Conducting a formal evaluation of the employee's performance, often using a combination of objective measures (e.g., quantitative targets) and subjective assessments (e.g., supervisor ratings, peer feedback).

Performance discussion: Meeting with the employee to discuss the performance appraisal results, providing feedback, and engaging in a dialogue about strengths, areas for improvement, and future goals.

Development planning: Collaborating with the employee to create a development plan that outlines actions and resources needed to enhance performance and achieve career objectives.

Follow-up and monitoring: Monitoring progress, providing ongoing support, and conducting periodic check-ins to ensure that the employee's performance and development goals are being addressed.

Overall, performance appraisals contribute to the continuous improvement of employee performance, the alignment of individual and organizational goals, and the development of a motivated and engaged workforce. Effective performance appraisals involve a balance of objective assessment, constructive feedback, and a focus on employee development and growth.


Types Of Appraisal

There are several types of performance appraisals that organizations may use to assess employee performance. The choice of appraisal method depends on factors such as organizational culture, the nature of the job, available resources, and the desired level of objectivity. Here are some common types of performance appraisals:

Types Of Appraisal
Types Of Appraisal


1. Rating Scales: Rating scales involve the use of predefined performance criteria or dimensions, typically represented as a numerical or descriptive scale. Supervisors evaluate employees based on these criteria, assigning ratings that indicate the level of achievement or proficiency in each area. Rating scales can range from simple scales (e.g., "poor," "average," "excellent") to more detailed scales with specific performance indicators.

2. Behavioral Observation Scales (BOS): BOS focuses on observable behaviors relevant to job performance. Supervisors or trained observers document specific behaviors that demonstrate desired competencies or skills. The assessment is based on the frequency, quality, or effectiveness of observed behaviors.

3. 360-Degree Feedback: 360-degree feedback involves collecting feedback from multiple sources, including supervisors, peers, subordinates, and sometimes even external stakeholders. This comprehensive feedback provides a holistic view of an employee's performance, incorporating different perspectives. It offers a broader assessment of an employee's skills, behaviors, and contributions.

4. Management by Objectives (MBO): MBO is a goal-oriented performance appraisal method. In this approach, employees and their supervisors collaboratively set specific and measurable performance goals at the beginning of a performance cycle. Performance is then assessed based on the achievement of these goals. MBO focuses on the results and outcomes that employees are expected to accomplish.

5. Critical Incident Technique: The critical incident technique involves documenting specific incidents or examples of an employee's performance that are particularly noteworthy, whether positive or negative. Supervisors keep a record of critical incidents throughout the performance period and use them as the basis for feedback and evaluation.

6. Narrative/Descriptive Evaluations: Narrative evaluations involve written or verbal feedback provided by supervisors, which provides a comprehensive and detailed assessment of an employee's performance. It focuses on strengths, weaknesses, achievements, and areas for improvement, offering a qualitative and holistic assessment.

7. Peer Appraisal: Peer appraisal involves employees providing feedback and evaluation on their colleagues' performance. Peers assess an individual's skills, behaviors, collaboration, and contributions to the team. This type of appraisal can foster a collaborative work environment and provide valuable insights from those who closely interact with the employee.

8. Self-Assessment: Self-assessment allows employees to evaluate their own performance and provide self-reflection on their achievements, challenges, and areas for improvement. Self-assessment can promote employee ownership and engagement in the appraisal process, encouraging self-awareness and personal development.

It's important to note that organizations may use a combination of these appraisal methods or customize them to suit their specific needs. The selected appraisal method should align with the organization's goals, values, and performance management philosophy, while also providing a fair and objective evaluation of employee performance.

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