Performance Appraisal - Judging & Rewarding the Employee

Published by MBA Skool Team, Published on July 01, 2016

Performance appraisal, normally in corporate world called as appraisal. Appraisal is the structured analysis of employee’s performance and to understand the areas on which employee needs improvement in order to sustain himself or herself in the competitive corporate world.

Generally, appraisal process carried out in following manner:


1. Supervisors review employee’s pay and compare it with the targets and plans.

2. Then supervisors analyze the factors on which employees performance are based.

3. Then the employer gives the feedback and guide employee for better performance.

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1. To understand strengths and weaknesses of employee.

2. To have a record in determining compensation and wage structure of employee.

3. To instil the competitive nature, so that better outcome can be expected out of an employee or in simple words appraisal’s main objective is to motivate employee for 100% output.

4. To provide feedback on performance of an employee.

5. To analyze the current training requirement is enough or there is scope of further training requirement for an employee.

For appraisal process there are certain tools available in order to evaluate. The tools which normally organization uses are as follows;


1. Paired Comparison

2. Ranking

3. Confidential Report

4. Forced Distribution

5. Checklists

6. Critical Incidents


8. Graphic Rating Scales

9. Performance Test

10. Forced Choice method

Personal Experience – Appraisal

It all starts when a fiscal year ends i.e. for India it is April to March and a new year starts. People not even came out of one appraisal result, they are directed to declare or set their targets for the coming year. This early phase of appraisal process is known as target setting period. Here basically I am talking about the checklists process, what exactly checklist appraisal process is all about, a certain value or rating is attached to the brief description of specific job. In simple words, a certain weighted value is assigned for each specific job. Most of the part at this phase is common for all the employees. Means the target is same for specific job. Though employees are asked to set the number of trainings they wanted to undergo of their choice.

Employee also has to mention their strengths and area for which they seek improvement. In corporate world, no one uses the word weakness, rather area of improvement or improvement scope such words are preferred. So employee fills all the detail as asked and set their primary target. After completion of target setting period, the employee gets an idea for which he’s going to be evaluated for the rest of the year and starts their work accordingly.

Next phase of appraisal is known as mid-term review. This normally takes place in the month of October. Employees are again asked to fill their activities, which they so far achieved. They have to mention against their earlier filled target that how much they’ve achieved, whether they are on right track or not. Till mid-term how much progress they have done. All things have to be mentioned again. This time employees have to mention their achievement, if they made any. Whether they’ve gone through any training or not? Every single details have to be mentioned during declaration of mid-term review. Once it is done, the next part is discussion on the declarations made by the employee. Supervisor, reviews the written on-line appraisal form and discuss with the employee about their progress and road ahead. They are given feedback on their progress and if any employee is lagging then they push that employee, so that he/she does not get lost in the process ahead.

Next and final phase is the filling of end year review appraisal form. Appraisal forms are filled against the target they set at the beginning of the process. In the final phase of appraisal, each employee is asked to fill their details on the basis of their performance for the current year. They asked to provide proof of their work which they’ve done. Each details are checked with proper proof, so proof is necessary to be attached with the form. If any employee achieved some extraordinary feat, then he/she is asked to brief about the achievement and provide the proof. Employees are asked on several important front, like, whether they have completed the training which they had mentioned during target setting? Whether they’ve delivered any knowledge sharing session? Whether any improvement on the areas for they mentioned? All possible things are asked to mention during the filling of final end year appraisal form. Once it is done, then the supervisor assigned to the employee review the whole form. Based on his review, supervisor arranged a personal discussion session with the employee. During discussion employee is asked about his ongoing work, his expectation from year’s appraisal. Any suggestion, if any, for the improvement of working culture. Any trouble he/she facing. All the professional details are asked and finally discussion happens on the appraisal form which an employee filled. Once the discussion gets over, employee again asked to give feedback for the discussion. Whether he/she’s satisfied with the discussion? Whether he/she wanted to have discussion again? Such questions asked, so that proper transparency of the process can be maintained.

Once the discussion and feedback session gets over, the supervisor give his/her rating to the employee, based on the discussion he/she had and the details filled by the employee. Appraisal process is never a single level approach. After the rating given by supervisor, employee’s form is send to the next level. The top management reviews the rating provided by supervisor. This is being done to avoid favoritism and biasness towards an employee. Once the assessment is done, the final report is sent to the Human Resource department (HRD). HRD prepares the final assessment repot.

After such a long and tedious process, the final day comes where employee is provided with the assessment report. The assessment report consists of rating given to the employee, areas of improvement (if any), salary raise details (if any) and finally the bonus or appraisal declaration amount, which he/she will be getting based on the rating received.


Appraisal gives employee reason to work better. The better you perform the better accolades you receive. It always give employee a hope to work for betterment. Satisfaction and dissatisfaction will always be there with the process. This article is based on my professional experience. It may defer from the actual appraisal process because it varies from organization to organization. Also I’ve not discussed the actual HR process based on which ratings are provided. Bell curve philosophy is also not explained, but I tried to explain the overall appraisal process which a normal employee faces.

This article has been authored by Rahul Burman from IIM Kashipur



2. Professional Experience – L&T and TATA

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