What is the best performance appraisal system, why?

Performance Appraisal System:

Performance appraisal is a systematic approach which provides employee’s performance of the job and also analyzes that employees meet the organizational goals or not. Performance appraisal system is important for the organizations because they can identify the potential employees, and also the weak areas of employees are identified. (HJ Bernardin, 2013)

Organizations adopt different performance appraisal system, and it is the nature of the organization which determines that what performance appraisal system should be best for the company. There is some performance appraisal system:


  • Management by Objectives: In this organization evaluate whether employees achieve the set goals determined by an organization or not.
  • Forced Distribution: In this appraisal system managers classify the employees in different ranks according to their performance and categorize them.
  • 360 Degree Feedback: By this, employees receive feedback from all other staff too and not only the manager but also another worker
  • Performance Ranking: Instead of accomplishing company’s objectives, managers evaluate employee’s performance on their skills and against each other.
  • Combined Manager-Employee Appraisal: In this employee’s self-evaluation and manager feedback combines and provides feedback. (Rajput, 2015)

In above all the best appraisal system is Combined Manager-Employee Appraisal System because by this employees are able to judge themselves and also manager feedback provides motivation to work more. Self-evaluation provides employees to judge themselves first and by this, they are able to criticize themselves before other do. The Manager response and feedback also motivate them. By this appraisal system, both employee and manager are work for the growth of company and employees also make better their quality of work.