The appraisal process is the periodic evaluation of each employee's on-the-job performance as well as skill levels, attitudes, and potential. Management uses this written form of communication as a tool to inform employees of their progress made during the evaluation period. Management also uses the appraisal process for insight on potential employees who might be considered for advancement. Also known as performance appraisal or performance review, the application of this process is used through most organizations. The appraisal process has become an important tool in communicating managements thought on employee's progress.
The appraisal process is also used to evaluate an employees potential. Management may decide to delegate more tasks to an employee whose performance meets or exceeds expectations. This includes added responsibilities and advancement within the organization. Recognizing and rewarding employees is another reason organizations use performance appraisals. Not only does recognizing and rewarding boost an employee's morale, it allows for other employees to model their work ethics upon. The appraisal process will also highlight those areas of employee performance that may need improvement. One way to improve employee's performance may be to provide additional training in areas lacking. This appraisal tactic allows management the ability to eliminate employees whose performance does not meet standards and expectations set forth by the organization.
The Appraisal Process is usually conducted one to two times throughout the year. Employees are evaluated depending on the criteria prevalent to the current job of such employee. This evaluation must be free from any kind of contamination, and requires acceptance by the organization and its management as realistic criteria. The appraiser must have full and complete knowledge of the job responsibilities of the employee, and maintain accurate information regarding the employee's performance.