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What is Performance Appraisal?

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A performance appraisal is the name for a system that reviews employees� work efforts, often on an annual basis, and lets them know how they�re doing in the company. Generally a supervisor fills out a form or questionnaire regarding the employee. Sometimes the employee also fills out a self-evaluation form. Then the two meet in person to discuss the forms and use the time to address performance issues, set goals for the upcoming year, and identify steps to improve performance.

The goal of a performance appraisal is to give the employee feedback on his or her daily contributions to the company, and, for some companies, to explain the reasons behind salary increases or decreases. Though, not everyone ties salaries to performance.

Performance appraisals are also known as:

� Employee reviews

� Employee evaluations

Employees and employers, alike, often fear the performance appraisal. The good news is, however, that if employees and employers talk freely throughout the year, or even meet once a quarter to touch base, then nothing in the performance appraisal should come as a surprise. In fact, nothing in the evaluation should be new to either the employer or the employee. This instead is a time to recap the year, set goals to improve the next year, and enjoy a little face time. It helps for employees to understand that employers don�t like doing these reviews any more than employees like sitting through them. With that in mind, maybe both sides will relax a little and see the good that comes from doing this annual exercise.

Next Page: What are the benefits of conducting a Performance Appraisal?

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