Performance appraisal of employees is part of any comprehensive career development program of companies.  It does not merely try to find inadequacies in performance but also the strengths that lie behind each employee performance. This appraisal or review puts into focus the capabilities that can be continuously harnessed by companies while placing attention on the areas that need to be improved as well.

Why is Employee Appraisal Needed

Regular employee appraisal or evaluation is needed to check whether employees are performing at par in relation to their given responsibilities and the expectations of the employers in relation to results.  The evaluation has to be in line with clear goals set by the company so that employees’ performance will be scrutinized fairly. Looking for results that have not been clearly established is quite unrealistic even among conscientious employees.

What Does an Employee Appraisal Include

An employee appraisal will include the evaluation of employees based on their organizational behavior, accomplishments, strengths, weaknesses, and potentials. It usually involves an interview with the concerned employee so as to provide feedback, discuss areas for work improvement and other job-related issues, and provide counseling when needed.  The appraisal is done in line with organizational objectives and set employee criteria.

Applications of Employee Appraisal

The results of employee appraisal can be used for determining critical employment decision such as promotion, termination, pay increase, additional work responsibilities, or transfers.  Most companies use the appraisal as part of motivational program to encourage better work performance.  The main purpose of employee appraisal is work improvement but it is also an opportunity to improve employer-employee communication.

Expected Benefits of Employee Appraisal

Employee appraisal is expected to provide benefits to the company and the employee.  The results aid in company goal setting, determination of training needs, and provision of employee focus.  The main expected benefits are the improvement of work performance and better communication between employer and employee.

Potential Problems with Employee Appraisal

There are some potential problems with doing employee appraisal and much has to do with the perception of fairness in how it is done.  Since an appraisal is more or less an issue of judging an employee, some aspects can be very subjective. Judgments based on actual tests and performances are much easier to make as compared to behavior and decision-making capabilities.

The Human Resource Division of companies usually handles employee appraisal.  It is done typically on an annual basis.  It is expected to be carried out under the guidance of fair employee practices.

Teresa is a researcher-writer who covers a wide range of topics in search of useful information.



Originally posted on March 30, 2013 @ 10:24 am


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