PERFORMANCE
APPRAISAL
Concept, definition, philosophy, and nature
Concept of Performance Appraisal
Performance appraisal is a systematic and structured process. It evaluates an employee's work
performance and potential in an organization. It goes beyond simply judging an employee's output; it
involves assessing their skills, behaviors, and contributions to the company's goals. The goal is to
provide feedback for improvement and to inform decisions related to promotions, training, and
compensation. It is vital that the process is regular and transparent.
Definitions of Performance Appraisal
Different experts offer definitions that highlight key aspects:
Edwin B. Flippo: "Performance appraisal is the systematic, periodic and an impartial rating of an
employee’s excellence in matters pertaining to his present job and his potential for a better job."
Dale Yoder: "Performance appraisal includes all formal procedures used in working
organizations to evaluate the personalities and contributions and potential of group members."
These definitions underscore the systematic, periodic, and impartial nature of performance
appraisal, as well as its focus on both current performance and future potential.
Philosophy of Performance Appraisal
The underlying philosophy of performance appraisal is based on several key principles:
Employee Development: Appraisal aims to identify areas where employees can improve their
skills and knowledge. It's about fostering growth and helping individuals reach their full potential.
Organizational Effectiveness: By aligning individual performance with organizational goals,
appraisal contributes to the overall effectiveness of the company. A more effective workforce
means a more competitive business.
Fairness and Equity: Appraisal provides a basis for making fair and equitable decisions about
promotions, rewards, and other employment-related matters. This promotes a sense of justice
and motivates employees.
Communication and Feedback: Appraisal facilitates open communication between managers
and employees, providing opportunities for feedback, coaching, and goal setting. This allows a
manager and employee to get on the same page for future progression.
Nature of Performance Appraisal
Systematic Process Performance appraisal is a structured process with defined steps
Continuous Process and procedures.
Objective Evaluation
Future-Oriented It's not a one-time event but an ongoing process of monitoring and
evaluating performance.
It strives to be objective and impartial, using clear criteria and
avoiding bias.
It focuses not only on past performance but also on future
potential and development.
Summary
In summary, performance appraisal is a critical management tool that serves multiple purposes. It
provides a framework for evaluating employee performance, identifying areas for improvement, and
aligning individual goals with organizational objectives. By understanding the concept, definitions,
philosophy, and nature of performance appraisal, students can appreciate its significance in creating
a high-performing and engaged workforce.
