Features of Performance Appraisal

Features of performance appraisal are as follows:

1. Organised Process: Performance appraisal is an organized’ having the following three steps:

  1. Deciding performance standards.
  2. Comparing the actual performance of an employee with performance standards.
  3. Providing feedback so that the employee can remove errors and enhance his/her performance in due course of time.

2. Evaluating Process: It identifies the employees’ performance level and tries to develop a future improvement plan.

3. Periodic Process: Performance appraisal is performed at regular intervals as per the specified plan. It is not a one-time process.

4. Futuristic: Performance appraisal does not focus on the past; rather, it focuses on the future.

It identifies and indicates the areas where employees are lagging behind, helps employees to organize and produce results utilizing their capabilities in an appropriate manner.

5. Identifies Employee’s Potentialities: Performance appraisal determines the capability of the employee to perform the allocated job effectively.

6. Develops Employees: Performance appraisal also emphasizes the overall development of employees. It guides managers to act as a coach rather than a judge.

It helps in identifying the issues for discussion, removes any significant problems, and determines new goals for the purpose of attaining high performance.

7. Formal or Informal Process: Informal evaluation is generally based on opinions and ideas rather than facts. These are also affected by individual factors.

Due to this, some employees may get better chances of obtaining rewards than others. On the other hand, a formal system is more reasonable and based on facts. It is executed in an organized manner by using printed appraisal forms.

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