A Performance Appraisal System is a structured process used by organizations to assess and evaluate employee performance. It involves setting performance standards, observing and measuring employee output, and providing feedback to help individuals improve and align their efforts with organizational goals. This system typically includes self-assessments, peer reviews, and manager evaluations, ensuring a comprehensive view of an employee’s work.
For example, a company might use a performance appraisal system to review an employee’s yearly progress. The process might involve setting specific targets at the beginning of the year, regularly monitoring performance through ongoing feedback, and conducting a formal review at the end of the year. This helps in recognizing high achievers, identifying areas for development, and making informed decisions about promotions and compensation.
Related Terms:
Performance Improvement Plan (PIP)
Key Performance Indicators (KPIs)
