Hello Vijay,
Performance appraisal is done to evaluate the performance (i.e.,work rate, work quality, behavior, attitude, coordination with the superiors and subordinates, attendance, team work, etc) of the employees. Based upon the appraisal, the employee's receive all the benefits (incentives, rewards, recognition, hikes, promotions, etc).
Currently most of the companies are using one of the following Performance Appraisal Methods:
1).360 Degree Appraisal Method
2).Rating Scale Method
3).Management by Objective Method
Under the 360 Degree appraisal method the employee is rated from all angles i.e, by the superiors, subordinates, peers, suppliers, distributors, customers and clients.
Under the Management by Objective method the employee goals are set mutually by the employee's and the management. And the employees are rated based on the accomplishment of these goals.
Under the Rating Scale method each employee trait or characteristic is rated on a scale that usually has several points ranging from "poor" to "excellent" (or some similar arrangement).The traits assessed on these scales include employee attributes such as work quality,cooperation, initiative, punctuality and technical competence, etc. The selected traits should be in some way relevant to the appraisee's job.
Here, I am attaching a performance appraisal form with 7 performance factors/ employee traits (i.e, Job Knowledge, Work Quality, Work Rate, Communications, InterpersonalSkills, policy Compliance and Attendance), wherein each factor is to be rated on a scale of 1 to 5 (1-very poor, 2-poor, 3-Competent, 4-Good, 5-Exceptional). Based upon the rating an employee can be rewarded.
Hope it is helpful to you.
Regards,
Venkat Prasad