Performance appraisal is the process of reviewing an individual’s performance and progress in a job and assessing his potential. It is a systematic method of obtaining, analyzing a recording information about a person doing a specific job, rather than assessing the job itself as in the case of job analysis.
Performance appraisal is the assessment of the real and relative worth of the employees in a systematic and subjective way. The competence of the employee should be measured with reference to the established standard of the task assigned.
Characteristics of Performance Appraisal:
The characteristics of performance appraisal are given below:
- The system must be bias-free:
The evaluator must be objective and the methods of appraisal must be fair and equitable. The atmosphere must be that of confidence and trust.
- It must be relevant:
It should only measure behaviour that are relevant to the successful job performance and not any other personal traits.
- It should be acceptable to all:
The performance standards as well as the appraisal methods should be developed by joint participation and joint collaboration.
- It should be reliable; dependable; stable and consistent:
High reliability is essential for correct decision-making and validation studies. It should be sufficiently scientific, so that if an employee is evaluated by two different evaluators, then the result should be significantly the same.
- It must be able to objectively differentiate between a good employee and an ineffective employee:
Rating an employee average does not adequately indicate the degree of effectiveness. So the technique must be sufficiently sensitive to pick up the difference between an effective and an ineffective employee.
- It must be practical, sound, clear and unambiguous so that all parties concerned understand all its implications.