Question
Define performance appraisal and highlight its objectives.
Answer :
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Performance appraisal is a systematic and periodic process of evaluating an employee's job performance, skills, abilities, behavior, and overall contribution to organizational goals. It involves assessing an employee's actual performance against predetermined standards and providing constructive feedback for improvement. Performance appraisal is one of the most important functions of Human Resource Management because it helps organizations measure employee effectiveness, identify strengths and weaknesses, and make informed decisions regarding promotions, compensation, training, transfers, and career development. It is not merely a tool for judging employees but also a developmental process that encourages continuous learning, motivation, and improved performance. Performance appraisal is generally conducted annually or semi-annually by supervisors, managers, or appraisal committees using various methods such as rating scales, Management by Objectives (MBO), 360-degree feedback, behaviorally anchored rating scales (BARS), checklists, and self-appraisal. Modern organizations increasingly adopt objective and competency-based appraisal systems to ensure fairness, transparency, and alignment with strategic goals. The primary objective of performance appraisal is to evaluate employee performance accurately and fairly. It enables management to determine whether employees are meeting
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