But to properly evaluate an individual’s performance, appraisal of both subjective and objective factors needs to be done.
As Dale Yoder said, “Performance appraisal includes all formal procedures used to evaluate personalities and contributions and potential of group members in a working organisation.
A disadvantage of performance evaluations is that the managers evaluating employees may show bias to certain employees, which may happen intentionally or unintentionally.
One major risk of using performance evaluations is that some managers unconsciously favor employees that possess similar characteristics as the manager.
Often, employees are often curious to know about their performance details and compare it with their fellow colleagues and how they can improve upon it.
So every company needs a good performance appraisal system.
Performance appraisal is a systematic process in which employees job performance is evaluated in relation to the projects on which employee has worked and his contribution to the organisation.
It is also known as an annual review or performance review.
It helps the managers place the right employees for the right jobs, depending on their skills.