Performance appraisal is widely conducted in organizations as they concerned about employees’ performance. (DeNisi,2000) defines performance appraisal as “the system whereby an organization assigns some “score” to indicate the level of performance of a target person or group”. It is the process of evaluating the overall employee efficiency and the development in performance. Performance appraisal assesses the actual level of worker performance as well as understands the employee’s capability for future growth and advancement of the employee.
Performance appraisal is used by organization for various purposes. (Bowles and Coates 1993; IRS 1994, 1999; IDS 2007) report that “performance appraisal is used for clarifying and defining performance expectations, identifying training and development needs, providing career counselling, succession planning, improving individuals, team and corporate performance, facilitating communications and involvement, allocating financial rewards, determining promotion, motivating and controlling employees, and achieving cultural change”.
How appraisal is conducted
Types of appraisals
There are many types of appraisals in evaluating employees’ performance. It is important for organizations that design of performance appraisal methods must be congruent with competitive strategy of the organization. Some of the techniques used are as follows:
• Paired comparisons
• Graphic rating scale
• Critical incidents method
• Behaviourally anchored rating scale (BARS)
• Behaviour observation scale (BOS)
Advantages of Performance Appraisal
Organizations can find advantages by properly conducting appraisal system. It provides a valuable opportunity to improve the whole organization performance by concentrating work activities and objectives, recognizing and correcting existing problems and encouraging future performance enhancement. It measures the employees’ performance over a given period of time so