Steps of a Performance Appraisal

Performance appraisals are regular reviews of employee performance within organizations. Performance appraisals measure an employee's performance in the past year, identifying training needs and contributing to personnel decisions such as promotions, salary increases and terminations. They also give managers an opportunity to sit down and talk with their employees.

  1. Planning

    • At the beginning of every year, a manager and an employee should meet to discuss the employee's job description, responsibilities and duties. They should discuss what the employee did in the past year and what is expected in the future.


    • Once the job description and responsibilities are made clear to the employee, she sets out to achieve the goals assigned to her.


    • At the end of the year, the manager evaluates the subordinate's performance. The manager evaluates how well the employee met his objectives and deadlines, as well as the employee's attendance, behavior and initiative. The manager appraises the employee's performance both individually and with respect to other employees in the department. The manager's evaluation is then provided to the top management as well as the employee.

    Finalization of results

    • In case of exemplary performance, the employee might be rewarded with a promotion, perks, bonuses or a raise. In case of unsatisfactory performance, the employee is reprimanded by means of demotions or even termination. Training needs also might identified in a performance appraisal.

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