Q. Why we need Performance appraisal?

Meaning & definition: Performance appraisal is a method of evaluating the behaviour of the employees in the work spot, normally including both the quantitative and qualitative aspects of the job performance. Performance hence refers to the degree of the accomplishment of the tasks that make up an individual's job. It indicates how well an individual is fulfilling the job demands. Often the term is confused with the effort, which means energy expended, and used in a wrong sense. Performance is always measured in the terms of results. A student, for example, may exert a great deal of efforts while preparing for the examination but may manage to get a poor grade. In this case the effort expanded is high but the performance is low.

According to the Flippo, "a systematic periodic and so far as humanly possible, an important rating of an employee's excellence in the matters, pertaining job and to his potentialities for a better job".

According to the Shubin, "Performance appraisal is a systematic appraisal of the employee's personality traits and performance on the job and is designed to determine his contribution and relative worth of the firm".

A formal definition of the Performance appraisal is that, "it is a systematic evaluation of the individual with respect to his / her Performance on the job and his / her potential for development".

A more comprehensive definition is that, "Performance appraisal is a formal structured system of measuring and evaluating an employee's job, related behaviours and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization society all benefit".