International Journal of Development in Social Sciences and Humanities

Performance appraisal has been described as “the process of identifying, observing, measuring, and developing human performance in organization” It includes the importance of the appraisal process and different types of appraisal and their effectiveness. According to Flippo a prominent personality in the field of HR “Performance Appraisal is the systematic, periodic and an impartial rating of employee’s excellence in the matters pertaining to his present job and his potential for better job.” Performance appraisal is systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. Performance appraisal is the process of obtaining analyzing and recording information about the relative worth of an employee. Main Intention of performance appraisal system is to find out that an employee are really working all about an evaluation of every employee is based on performance appraisal system. Performance appraisal is a most valuable human resource tool. It is a vital component for the development of company as well as for individual employee. Performance appraisal plays critical role in organizations ability to achieve its strategic goals. Organization and the HR department has to design and implement performance appraisal system in an organization is a core managerial function. The intention of Performance appraisal is to evaluate the employee at all levels in organization. This are many advantages of Performance appraisal system; firstly organization comes to know who high performer is and who is not. “There is a correlation between clear purpose and understanding of performance appraisal and the level of satisfaction and staff engagement”