Performance Appraisal Process

Performance appraisal process consists of the following steps:

1.    Goal setting :

Goals are set for appraising performance which becomes standards. Standards should be applicable, adequate and objective. There should be scope for stretching human abilities. They should be high but reasonable and attainable in a given situation.

2.    Measure performance :

Once standards are set, next job is to measure performance against standards. Measurements can be annual, periodic or continuous.

3.    Find deviations:

Managers observe actual performance of employees, look at the environmental conditions and find deviations in performance.

4.    Corrective action:

Some deviations are desirable and some are undesirable when compared against goals/ standards. Corrective actions are taken and in some cases, the goals are modified.

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