HR Terminology

Appraisal

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  7. Appraisal: Definition and Importance in HR

Appraisal refers to the systematic evaluation of an employee’s skills and performance in relation to predefined organisational objectives.

An appraisal process is designed to provide constructive feedback, recognise achievements, identify areas for improvement, and align individual performance with organisational objectives. It serves as a foundation for making informed decisions about promotions, compensation, training needs, and career development.

The process often involves:

  • Setting clear performance goals and expectations.
  • Conducting periodic reviews and feedback sessions.
  • Utilising self-assessments, peer reviews, and manager evaluations.
  • Documenting outcomes and creating development plans.

A well-structured appraisal system fosters transparency, motivates employees, and enhances overall productivity.

FAQ

The primary purpose of an appraisal is to evaluate an employee’s performance, provide feedback, and identify opportunities for growth and development. It also aids in making informed decisions regarding promotions, raises, and role adjustments.

Regular and constructive appraisals foster a sense of recognition, encourage professional growth, and build trust between employees and management, leading to increased engagement and retention.

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