A performance appraisal is an annual review of an employee's job performance and overall contribution to a company at a given period of time.
- Setting and Measuring Goals. The performance appraisal process is commonly used to make sure that every member of the organization sets and achieves effective goals.
- Counselling Poor Performers. Performance appraisal forces managers to confront those whose performance is not meeting the company's expectations.
- Determining Individual Training And Development Needs. Performance appraisal procedure includes a requirement that individual development plans be determined and discussed, individuals can then make good decisions about the skills and competencies they need to acquire to make a greater contribution to the company.