Performance Appraisal- Meaning, definition, process, methods,essentials and problems.

Performance Appraisal


Performance Appraisal is the process of evaluating an employee’s performance of a job in terms of its requirements. Performance appraisal involves assessment of the actual performance of an employee against what is expected of him/her. Such assessment is the basis for awarding promotions, effecting transfers or assessing training needs.

According to Flippo 

“Performance    Appraisal   is the  systematic,   periodic   and  an  impartial   rating   of an  employee’s   excellence   in matters pertaining   to his present  job  and  his potential   for a better  job”.

 According to Heyel

“Performance Appraisal is the process of evaluating the performance and qualifications of the employees in terms of the requirements of the job for which he is employed, for purposes of administration including placement, selecting for promotion, providing financial rewards and other actions which require differential treatment among the members of the group as distinguished from actions affecting all members equally”.

Characteristics/Features of Performance Appraisal

  • It is different  from  merit-rating   as  it is wider  than merit-rating.
  • It aims  to  develop   a  rational   bases  for  personnel decisions.
  • It tries to find out how well the employee is performing the job and tries to establish a plan for further improvement.
  • It is not a past oriented activity rather it is a future oriented activity showing employees where things have gone wrong, how to set everything in order, and deliver results using their potential in a proper way.
  • It is not job evaluation.
  • Its focus is on employee development. It forces managers to become coaches rather than judges.
  • It may be formal or informal.


  • Formal appraisal of an individual’s performance began in the Wei dynasty (A.D. 221-265) in China where an Imperial Rater appraised the performance of members of the official family.
  • In 1883, the New York City Civil Service in USA introduced a formal appraisal programme shortly before World War I.
  • The US Army adopted the man rating system for evaluating military personnel. Hourly paid workers were evaluated during 1920-1930 on the basis of rating scores in Industrial Units.
  • Earlier appraisal system was termed as merit rating.
  • In 1950, performance appraisal techniques came into picture and were applied on technical, professional and managerial personnel.
  • From 1950 to till date tremendous changes have been made in the concept of performance appraisal.
Performance Appraisal- Meaning, definition, process, methods,essentials and problems.

2 thoughts on “Performance Appraisal- Meaning, definition, process, methods,essentials and problems.

    1. Please visit Entrance Exam Section on our website. We have uploaded notes and MCQS on HRM for first three units.Soon will be uploading rest of the units.

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