It is system owned by almost every organization. Performance appraisal system is basically designed and structured to analyze and evaluate the performance of an employee throughout the year and to determine the potential for improvement and development.
Performance appraisals helps to bring the promotions, confirmations, compensation reviews, bonus, improved communications, training and development, competence, evaluation of HR programs. There are two approaches to the performance appraisal system. The traditional approach and the modern approach. The traditional approach includes different appraisal methods like rating scales, force choice method, force distribution method, ranking method, paired comparison method, critical incident method, behaviorally anchored method, confidential reports. The modern approach is the 360-degree feedback system.
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