Performance Appraisal

Abstract

Performance appraisal is defined as the process of evaluating the current and/or past performance of employees I relation to established standards or criteria of performance. Performance appraisal is often misunderstood as performance management by a wide variety of managers. Performance management is a wider, integrated process that consolidates goal setting, performance appraisal, and development into a single common system. The aim of Performance management is to ensure that an employee’s performance complies to the strategic aims of the company. It is a complex process on which a considerable amount of time is devoted in order to achieve effectiveness. Thus, performance management can be best viewed as a continuous process of involvement of the employer and employee over time, which demands daily, not annual attention. It can be compared to a compass, which provides real time information about the difference between one’s current location and the desired course/objective.