Performance Appraisal?

Performance appraisal is a process with the help of which the performance of an employee is evaluated. It is also referred to performance evaluation.

  1. There can be several parties involved in the performance appraisal i.e. top management, immediate supervisor, peers, customers etc.
  2. Top management has access to documented record of their employee’s progress and uses it to evaluate them.
  3. Immediate supervisor has a direct access to the person who is to be appraised so this would be an accurate appraisal in many cases.
  • Peers know each other’s performance and can evaluate each other as they work together.


  1. There are several performance appraisal methods e.g. ranking method, paired method, grading, and management by objectives, behavioral anchored rating scale, 360-degree appraisal and cost accounting method.
  2. Ranking method is when employees are ranked one against the other in an organization.
  3. Behaviorally anchored rating scales or BARS are used to make a comparison of a person’s performance against specific behavioral variables identified in terms of numerical ratings. BARS are beneficial in the employee appraisal.
  • 360-degree appraisal uses the input from top management, immediate supervisor, peer, subordinates, self, and customers.


  1. Performance appraisal is an ongoing process that is used to collect and document the information related to an employee performance.
  2. It can be set to take place once or twice a year or other defined periods.
  3. It can also be done on daily basis mostly in smaller organizations.
  • Performance appraisal can also be set to take place when rewards are going to be issued to employees based on performance.