Performance Appraisal

Abstract

Performance appraisal is a systematic process of evaluating employee performance against predetermined standards to assess their contribution toward organizational goals. It serves as a key tool in human resource management by identifying strengths, weaknesses, and potential areas of development for employees. The appraisal process not only facilitates fair evaluation but also provides a basis for promotions, rewards, training, and career planning. Effective performance appraisal enhances employee motivation, accountability, and productivity, thereby aligning individual performance with organizational success. However, challenges such as bias, lack of transparency, and inconsistent evaluation methods often limit its effectiveness. Thus, adopting modern appraisal techniques such as 360-degree feedback, continuous performance monitoring, and data-driven evaluation methods can lead to more accurate and constructive outcomes.