Performance Appraisal

Performance appraisal is the process by which organizations collect information about how well employees are doing their jobs. Evaluation of employee job performance is one component of the performance management process. Organizations use performance appraisals to:

1. Provide feedback to employees in performance reviews
2. Help modify ineffective or inadequate work behavior (which may result in a performance improvement plan)
3. Generate information that can be used to determine compensation, such as salary increases and bonuses.