A performance appraisal is the formal checkpoint where a manager and employee review how the employee performed over a defined period against the goals and expectations set for it, usually concluding in a documented rating.
What it means
An appraisal works best when it summarises a period of ongoing feedback rather than introducing surprises - issues raised for the first time at the appraisal, with no prior discussion, are a common source of disputes and disengagement.
Where it fits in
Appraisal outcomes commonly feed directly into a merit increase decision and into quality-of-hire assessment for recent recruits, making the appraisal one of the clearer links between performance management and pay.
Key rules
- A formal, periodic assessment of results against expectations.
- Should summarise ongoing feedback, not introduce first-time surprises.
- Concludes in a documented rating, usually against a defined rating scale.
- Commonly feeds into merit increase and quality-of-hire decisions.
