Performance Appraisal

A structured evaluation of an employee’s job performance over a specific period to assess strengths, areas for improvement, and potential career growth.HR professionals use performance appraisals to set objectives, provide constructive feedback, and determine promotions or salary adjustments. Appraisal methods include 360-degree feedback, self-assessments, and managerial evaluations.

What are the 5 steps in the performance appraisal process?

The typical performance appraisal process involves the following five steps:

1. Set Performance Standards – Define clear, measurable expectations aligned with organizational goals.
   
2. Communicate Expectations – Ensure employees understand the criteria and goals they will be evaluated on.
   
3. Measure Actual Performance – Collect data through self-assessments, manager feedback, KPIs, or project outcomes.
   
4. Compare Against Standards – Evaluate performance by comparing actual results with the predefined standards.
   
5. Provide Feedback & Take Action – Share results with employees, discuss strengths and areas of improvement, and set goals or development plans.‍

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What is 360 performance appraisal?

A 360-degree performance appraisal is a feedback system where an employee is evaluated by multiple sources – including:

• Manager/Supervisor
  
• Peers/Colleagues
  
• Subordinates (if any)
  
• Self-assessment
  
• Sometimes external stakeholders like clients
  

It provides a holistic view of performance, behavior, and interpersonal skills, helping in personal development and leadership assessment.

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What is the role of HR in performance appraisal?

HR plays a crucial role in ensuring the appraisal process is fair, structured, and aligned with company goals:

• Design the Appraisal System – Develop and maintain performance evaluation tools, templates, and policies.
  
• Train Managers and Employees – Ensure everyone understands how to conduct and participate in the process.
  
• Facilitate the Process – Schedule reviews, send reminders, and coordinate meetings.
  
• Ensure Fairness and Compliance – Monitor consistency, address biases, and ensure legal compliance.
  
• Use Data for Decisions – Analyze performance data for promotions, training needs, succession planning, and rewards.