Performance Appraisal (PA)

Posted in Human Resource Terms, Total Reads: 1836
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Definition: Performance Appraisal (PA)

A Performance Appraisal (PA) typically involves evaluating an employee’s current and/or past performance relative to the individual’s performance standards. 

The PA form is only a tool and a part of the appraisal process. The process assumes that the employee is already aware of the performance standards set and received proper feedback for improvement. The larger goal is improving the employees’ performance and thereby the organisation’s progress. 


There are three broad steps under the process:
1. Defining the Job: In this step, the manager and the employee agree on the duties and job standards.
2. Appraising performance: Comparing actual performance to the standards that have been set, typically using some type of rating form.
3. Feedback sessions: The employee discusses his/her performance and progress with the manager and identifies development needs is any. 

Performance Appraisal


Traditionally Indian organisations followed a disorganised approach to performance appraisal where obedience and willingness to take orders were considered good indicators. The processes lacked transparency and appraisals titled confidential reports. The shift occurred only when Larsen and Toubro (L & T) Ltd. with the help of faculty from IIM-A streamlined their process to a development-oriented appraisal system.


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