Performance appraisal is to review and evaluate the performance of employees over a given period of time. It is the process of measuring productivity and improving employee performance as well as determining employee developmental needs. Explore employee job growth and set goals to strive for next appraisal review.


Evaluation is the review and assessment of employee’s job performance on efforts they have made and what they have achieved. The information will likely play a part when making employment decisions on promotions, salary increases, bonuses, and training.

Providing feedback

Providing feedback to the employees regarding their performance, so that they know how well they have done will help them to improve in the future.

Measure performance accurately

The Performance criteria has to be set to help in accurate measurement of employee’s job performance. The company's goals can be achieved only with the effort of employees.

Clarifying role and expectations

Everyone is given duties on their job. But not all employees can get clear output from their duties. The Manager should communicate with the employees to provide clarity of the expectations, responsibilities and functions to be performed by the employees.

Identify area of weakness

Everyone has their weakness and may not be an "all-rounder". Performance appraisal process helps in identifying the weakness of the employee.

Training and development needs

To help turn the weakness into a strength, the manager has to be responsible for providing training. This will help improve staff performance and knowledge.

Other purposes of performance appraisal:
  • provide career path and goals setting
  • determine employee promotion
  • decide salary increments and bonuses
  • decide retention and termination of employees
  • to reduce the grievances of employee
  • strengthen the relationship and communication
  • evaluate effectiveness of human resource management functions
  • motivating superior/manager performance
  • Motivate superior/manager performance and
  • improve decision-making ability