Performance Appraisal Systems

Performance Appraisal Systems

Performance Appraisal Systems.

Performance Appraisal Systems: A performance appraisal system is a technique mostly applied by companies and organizations to aid in the systematic evaluation of the employees, as well as their job performance.

The techniques encompassed make up the core of an employee’s career development as they ensure a sustained review of their performance purposed at facilitating incessant progress.

By direct comparison with the company’s or organization’s pre-established criteria alongside its objectives, the employee’s contribution to those achievements determine the intensity of their efforts hence portraying their productivity.

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This system encourages the employees to master new skills. Increasing productivity because even subordinates may often receive more compensation than their seniors. Besides this, the team based system offers pay and incentive according to the effectiveness of a team.

This encourages employees to work together as a team through ultimate cooperation and confidence in each other. Although this seems to motivate the employees more effectively as a group, or a department for instance. The individual employees also learn from their respective groups on how to improve their personal mastery of skills.

As a result, the healthy competition between the various groups thus stimulates motivation. As each group puts in more effort targeted at attaining the promised incentive or benefit package. With this regard, an effective performance appraisal system should have the capability to provide ultimate results by itself, but an integration with reward systems such as compensations and benefit packages should foster escalated productivity.


Bhattacharya, M. S., & Sengupta, N. (2009). Compensation management. New Delhi: Excel Books.

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