Performance appraisal is a tool used in organizations to evaluate performance of employees. It is one of the most common techniques used in today's workforce that assists in taking decisions for compensation increases. Many organizations use a variety of performance appraisal methods to evaluate their employees' performance. The outcome of performance appraisals often lead to rewards, benefits and promotions. Falcone and Sachs (2007) say performance appraisal is important for employee development and career objective. According to Sandler and Keefe (2003), employees should have a clear vision of their responsibilities. "Employees need to be given a clear and precise definition of what is expected - the job description - and that managers and supervisors must be consistent and fair in judging their employees' fulfillment of expectations." (Sandler & Keefe 2003)
The performance appraisals are also helpful in establishing training and development needs, as well as transfer and promotion opportunities.
In most organizations performance appraisal is conducted on an annual basis, and is also conducted after a new employee has spent 90 days in the organization, or has been transferred to a new position.
For evaluating the usefulness of the performance appraisal process and decide the satisfaction with the process, a survey is conducted. The survey is consists of a number of questions, for example:
(i) Job knowledge and abilities (this question helps managers in determining ability of the employees to perform all aspects of the job)
(ii) Adaptability and Flexibility (This is used to judge workers' ability to cope with change; multi-skills for craft workers)
(iii) Productivity (individual work output)
(iv) Quality of work (attention to detail; consistent quality)
(v) Attitude to work (commitment, motivation, enthusiasm)
(vi) Interaction with co-workers (communication skills, team working ability)
(vii) Originality of thought or initiative (problem solving)
(viii) Perception (this is used to...