Although it has been described earlier, I would like to elaborate further that Performance Appraisal is part of a larger system known as the Performance Management System. This system is the approach to the management of people using performance, planned goals and objectives, measurement, feedback, and recognition to motivate people to realize their maximum potential.
Its main aims are:
1. To evaluate employees' performance according to set standards.
2. To give feedback to staff regarding their performance.
3. To encourage good work.
4. Point out opportunities for improvement.
5. Set measurable targets and objectives.
6. Increasing Role Clarity.
7. Training and Development.
8. Compensation and Reward.
9. Career Planning.
10. Enhance Corporate Values.
Practically, every organization uses and designs its appraisal system according to its setup and working pattern. Therefore, it is not always necessary to fully implement an already working system of another organization in your organization.
Regards,
Khalid