Section: HR & People · Performance ManagementDifficulty: Easy

Performance Appraisal

USUK

A formal process of evaluating an employee's performance against set objectives.

Also: performance review · annual appraisal · employee evaluation

Definition

A performance appraisal is a structured, typically annual or biannual process in which an employee's work performance, competencies, and contribution are formally assessed against pre-established goals and expectations. The appraisal outcome typically informs decisions about salary increments, promotions, training needs, and, in poor performance cases, corrective action. Modern organizations increasingly supplement annual appraisals with more frequent check-ins and continuous feedback mechanisms.

Example

During the annual performance appraisal, Arun's manager rated him as a high performer based on his exceeding sales targets by 130% and his strong leadership of the regional team.

Synonyms

  • performance review
  • annual review
  • performance evaluation
  • employee review

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