Appraisal, also known as performance appraisal, evaluation, or review is a process executed to assess the performance or contribution of each employee over a given period of time against the predefined goals.
In simple words, performance appraisal is a process carried out to reward the best employees with promotions/ pay increases or both and provide more direction to the low performing employees so that they can improve.
There are two approaches to assess every employee’s performance, i.e. traditional and modern. While traditional methods are quite passé now, most of the performance management software use at least one of the below mentioned modern and credible appraisal methods.
- 360 feedback
- Peer assessment
- Employee-initiated appraisals
Using a mix of these methods or even one helps keep a record of performance so that every small, big failure or achievement can be recalled at the time of semi-annual, annual and quarterly meetings.