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Performance Appraisal Process

Madhurjya Bhattacharyya
The complete cycle of performance appraisal process begins with its declaration by the management and ends with you getting a hiked paycheck. Read ahead to understand this paradigmatic procedure that most companies follow.
As the name suggests, performance appraisal is a process, which reviews an employee's performance in a given year. Depending on the performance of an employee in his or her job, he receives a reward or recognition. This procedure is a way to identify the areas in which an employee needs to improve, besides helping in the promotion of professional growth.
Many times, it has been found that a supervisor communicates with his subordinates only during the appraisal process, which in turn has a chance of creating a communication gap between the management and the employees, thereby straining productivity. In fact, effective communication throughout the year helps in creating a healthy working relationship.


There are several steps that most employers follow during the appraisal process. These are as follows:

Setting Performance Standards

The first step that employers follow is to set a particular benchmark, which they would use for comparing performance of each employee.
The criterion is set, taking into consideration the contribution of an employee to the organizational objectives and goals.


Once these standards are set, the management communicates the same to all the employees. This would, in turn, help them to understand the roles they are expected to play and what exactly is expected out of them.
The set standards are also communicated to the supervisors or evaluators, and in case there is any feedback from the employees or supervisors to modify the standards, it's done at this stage.

Measuring Efficiency

The most difficult part of this procedure is to measure the performance of each employee, which involves the quality and quantity of work done by each of them.
It's a never-ending process, and each employee's performance is monitored throughout the year. For this purpose, the management carefully selects techniques to measure it and takes care that there is no personal bias against any employee.

Comparing Desired Performance With Reality

Every employer, when he selects a new employee, clearly states the efficiency level that he expects from him. At the end of a specified period, a comparison is made between his or her performance with what was expected out of him.
This comparison provides an idea of deviation in the performance of each employee. The results can either be performing better or less than the standard set.


Once the comparison is made, the results are discussed and communicated with each employee in a closed-door meeting.
The main focus here is listening and communication between the employees and the management. Problems of each employee and the possible solutions are discussed, and a consensus is reached. The feedback should be conveyed with a positive attitude as it can affect an employee's performance in the future.


The final step of the appraisal process is decision-making, wherein the employees are provided additional training to improve their performance and take corrective action if they lag behind, in comparison to others.
Other decisions such as transfers, demotions, promotions, and rewards are also decided.

Need for This Procedure

Review of each employee's performance periodically helps the supervisors to understand an employee's abilities better. The whole aim of the process is not to demotivate one but to recognize his or her achievement, assess the progress he has made, and to provide training to develop his or her strengths and skills.
Thus, the appraisal procedure is a critical component for the growth and development of the company and all the employees in an organization. If there are any grievances or problems faced by an employee, he/she should bring them to the notice of the management at the earliest.