Performance Appraisal

Performance Appraisal - Definition and Uses

Administrative and Developmental Uses of Performance Appraisal

Performance appraisals are used to assess an employee’s performance and provide a platform for feedback about past, current, and future performance expectations. Performance appraisal is variously called employee rating, employee evaluation, performance review, performance evaluation, or results appraisal. Performance appraisals are widely used for administering wages and salaries, giving performance feedback, and identifying individual employee strengths and weaknesses.

Roles in Performance Management

Leaders roles change and they are required to adopt additional roles in the Performance Management Process. Some of the roles identified include Champion for change, performance management advocate, and performance coach. Leaders as change champion are entrusted to improve business performance by taking initiative and through identification of key success details for building performance capacity. For the purpose of successfully building capacity of performance management and improvement seven key skills are identified. Firm leaders must:

Objectives of Performance Management and Appraisal

Performance Management is a key process of HRM that provides basis for developing individual and business performance. And is a part of the reward system in the most general sense. The intention is to improve the performance of the individuals and teams. It is about getting better results by understanding and managing performance through an agree framework of planned goals, standards and competency requirements. Performance Management is about finding answers to "What is to be achieved" and "How it is to be achieved". It helps find better and effective ways to improved business results.

Performance Appraisal Interviews


Threats and Opportunities both lie at the heart of performance appraisal, both the employee and the manager are locked in an emotional experience, where for the former it could be stressful and anxious experience the latter has to show how can he/she shapes things and make them simple, and create a better productive environment.

Differences between Performance Appraisal and Performance Management

The need for  performance management was never as important as it is today, the world of business is witnessing immense change, with the focus of Business, Employees and Customers seeing a transformation. Business wants their employees to be on the peak of their performance in serving the customers. Performance management is based on the principle of management by agreement or contract rather than management by command. It emphasizes development and the initiation of self-managed learning plans as well as the integration of individual and corporate objectives.

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