Performance appraisal concepts and methods

Performance appraisal is an assessment of an employee in performing his job. It is formal, structured system of measuring, evaluating job related behaviors and outcomes to discover reasons of performance and how to perform effectively in future so that employee, organization and society all benefits. It provides a rational base for various HR decisions such as rewards, career planning, transfers, training and development, counseling, mentoring, termination, etc. The objective of the paper is to explain the various prevailing methods of performance appraisal. It will also explain the major components of this system and what development decisions can be taken on the basis of performance appraisal system. The paper will also give a brief idea on the performance appraisal systems being followed in the organizations these days.