Performance Appraisal (PA):Meaning,Objectives,Importance

Meaning and Definition of Performance Appraisal

Performance Appraisal/ performance evaluation is a method of evaluating the behaviour of employees in work spot, normally including both the quantitative aspects of job performance. Performance here refers to the degree of accomplishment of the tasks that make up an individual’s job. It indicates how well an individual is fulfilling the job demands. Performance is always measured in terms of results.

According to Monday et al___”Performance appraisal involves the identification, measurement, and management of human performance in organisation”.

According to DeNisi___“Performance appraisal is the system whereby an organisation assigns some score to indicate the level of performance of a target person or group”.

According to __Dale S. Beach, “Performance appraisal is systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development“. 

According to Randall S. Schuler___ Performance appraisal is a formal, structured system of measuring and evaluating an employees job, related behaviour and outcomes to discover how and why the employee is presently perfuming on the job and how the employee can perform more effectively in the future so that the employee, organisation, and society all benefit.” 

According to Flippo___”Performance appraisal is defined as a systematic,periodic and so far as humanly possible,an impartial rating of an employee’s excellence in matters pertaining to his present job and to his potentialities for a better job”.

Features of Performance Appraisal

1.  Systematic Process: The appraisal is a systematic process involving three steps:

  1. Setting work standards.
  2. Assessing employee’s actual performance relative to work standards.
  3. Offering feedback to the employee so that he can eliminate deficiencies and improve performance in course of time.

2. Evaluating process: It tries to find out how well the employee is performing the job and tries to establish a plan for further improvement.

3. Periodic Process: The appraisal is carried-out periodically according to a definite plan. It is certainly not a one shot deal.

4. Future-Oriented: Performance appraisal is not a past-oriented activity with the intention of putting poor performers in a spot. Rather, it is a future-oriented activity showing employees where things have gone wrong, how to set every thing in order, and deliver results using their potential in a proper way.

5. Determines Employee’s Potentialities: Performance appraisal refers to how well an employee is doing the assigned job.

6. Employee Development: Performance appraisal is not limited to calling the fouls’ . Its focus is on employee development. It forces managers coaches rather than judges. The appraisal process provides an opportunity to identify issues for discussion, eliminate any potential problems, and set new goals for achieving high performance.

7. Formal or Informal Process: The informal evaluation is more likely to be subjective and influenced by personal factors. Some employees are liked better than others and have, for that reason only, better chances of receiving various kinds of rewards than others. The formal system is likely to be more fair and objective, since it is carried out in a systematic manner, using printed appraisal forms.

Objectives of Performance Appraisal

  • Providing Feedback
  • Facilitating promotion and Downsizing Decision
  • Motivating Superior Performance
  • Setting and Measuring Goals
  • Determining Compensation
  • Counselling Poor Performers
  • Encouraging Coaching and Mentoring
  • Supporting Manpower Planning
  • Determining Individual Training and Development Needs
  • Determining Organisational Training and Development Needs
  • Validating Hiring Decisions
  • Providing Legal Defensibility for personnel Decision
  • Improving Overall Organisational Performance

Importance of Performance Appraisal

  • Performance Improvement
  • Compensation Adjustment
  • Determining Informational Inaccuracies
  • Making Placement Decisions
  • Career Planning and Development
  • Identifying Staffing Process Deficiencies
  • Training and Development Needs
  • Diagnose job Design Errors
  • Identifying Factors Affecting Performance
  • Equal Employment Opportunity