Definition of Performance Appraisal

Performance appraisal is a systematic evaluation of the individual with respect to his performance on the job and his potential development. Or Performance appraisal is to know how well an employee does his job. This is carried out by immediate supervisor of the employee and is received by the employer or next higher supervisor.

Basics Considerations in Appraisal

Following are the basic considerations in appraisal.

Standard of Performance

Fist a standard is made, depending upon the nature of work. Then the actual performance of the employee is compared with the standard. By establishing standard, supervisor and also the employee know what is expected while performing a job. Standard may be set for all the activities, whether quantitatively measurable or not, depending upon the criteria set by the supervisor.

Performance and Potentials

Performance means actual work done by an employee, whereas potential is the expected performance by him in future, according to his capabilities.

Who does Appraising

It must also be considered, who shall perform appraising function. Generally in all type of organizations, immediate supervisors of the employees do it, because they know their subordinates better. But others, depending upon the policies of the organization can do appraising function.