1 mins readPerformance Appraisal is a formal, periodic review of an employee's job performance, behavior and results against agreed objectives. It helps managers assess contributions and plan development.
What is Performance Appraisal
In human resources, a performance appraisal is a structured process used by an organization to evaluate an employee's work, set goals and provide feedback. Reviews can be annual, semiannual or ongoing.
How does it work
Appraisals typically combine self-assessment, manager evaluation and evidence such as goals, key performance indicators and competency ratings.
- Set agreed objectives and metrics
- Collect evidence and ratings
- Hold a review meeting and agree a development plan
Used correctly, appraisals support decisions on pay, promotion and learning.
Practical usage and examples
Organizations use appraisals for performance reviews, calibration, succession planning and compliance with labor policies. Common use cases include annual reviews, probation checks and performance improvement plans.
- Example: A manager uses appraisal ratings to decide merit increases
- Example: HR aggregates ratings to identify training needs
Related HR concepts
Related terms include performance management, performance review, KPI, feedback, competency framework and development plan. These concepts often work together in talent management and workforce planning.