INTRODUCTION Performance appraisal is a systematic evaluation of the individuals with regard to h i s ( o r ) h e r p e r f o r m a n c e o n t h e j o b a n d h i s potential for development.

nt. P e r f o r m a n c e appraisal is the process of evaluating the performance and qualifications of the employeesi n t e r m s o f t h e r e q u i r e m e n t s o f the job for which he is employed. F o r t h e p u r p o s e o f administration including placement, selection for promotion, providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally.Appraisal should be future oriented activity that provides workers with useful feedback and coaches them to higher levels of performance. Appraisal the performance of individuals, groups and organizations is a common practice of all societies while in somei n s t a n c e s these appraisal processes are structured and formally s a n c t i o n e d . I n o t h e r instances they are an informal and integral part of daily activities. Performance Appraisal is t h e m o s t p o w e r f u l a n d l e a s t expensive for directing, managing and developing t h e performance and potential of teams and individuals. Performance Appraisal is the s y s t e m a t i c d e s c r i p t i o n o f an employees job relevant strengths and w e a k n e s s e s . Performance Appraisal is the method of evaluating the work allotted to the employee in the work area. Performance Appraisal is a process of summarizing, assessing and developing t h e w o r k p e r f o r m a n c e o f a n e m p l o y . T h e b a s i c purpose is the find out how; well the employee is performing the job and establish a plan of improvement. P e r f o r m a n c e Appraisal can also provide data to determine promotion transfer and even demotions of the employee. It has direct bearing an other personal decisions. Performance Appraisal is a continuous process in every large scale organization. It mayi n v o l v e g o a l s e t t i n g , e m p l o y e e selection, placement and compensation, training a n d development and carrier management. Performance Appraisal is creating a shared vision of the purpose and aims of the organization, helping each individual employee to understand and recognize their part in contributing to them there by m a n a g i n g a n d e n h a n c i n g t h e performance of both individuals and the organization .A properly developed appraisal process can serve as contract between the teamnumbers and the team. It informs people about what expected and how performance will beappraised.

During the appraisal period, an effective appraisal tool and process can helpdetermine what the individual (or) team member must start doing, continue doing (or) stopto be more effective. This serves and important development function that may suggesttraining to improve the ability to perform. But suppose, an individual has the skills to dothe job but is still not performing. The issue is likely motivation (or) lack of motivation.Since the elements of an effective motivation. Strategy includes feed back, goal setting,team problem solving and incentives.By using the techniques and apply the skills, individual and the team canconstruct a meaningful appraisal tools and use a process that serves the purposes, you want purposes like clarifying expected performance, focusing team work, reviewing progressand developing performance and the team can use the tool for continuous improvement of performance and development of potential to perform more complex tasks.For ex. feed back given periodically help ensure that the team and individual know how he(or) she is doing. Goals are set that specify what the team member (or) individual should bedoing. The team participates in problem solving barriers that impede productivity. Finally,d e c i s i o n s a b o u t h o w t o e q u i t a b i l i t y a l l o c a t e i n c e n t i v e s a r e m a d e c o n t i n g e n t o n a f a i r appraisal of performance.

OBJECTIVES OF PERFORMANCE APPRAISAL: Data relevant to performance assessment of employee are recorded, stored and used for several purposes.The main objectives of employees performance appraisal are: 1.To effect promotions based on performance and competence. 2.To confirm the services of probationary employees, upon their completing the probationary period satisfactorily. 3.To access the training and development need of the employees. 4.To decide upon a pay raise where (as in the unorganized sector) regular pay scales have not been fixed. 5.To let the employees become aware about their performance level and to assist them withconstructive criticism and guidance for the purpose of their development. 6.To improve communication, performance appraisal provides a

f o r m a t o f d i a l o g b e t w e e n superiors and the subordinates, there by bringing an understanding or personal goals andconcerns. IMPORTANCE OF PERFORMANCE APPRAISAL: Performance appraisal is the systematic description of an employees job relevantstrengths and weakness. The basic purpose is to find out how well the employee is performing the job andestablish a plan of improvement. Appraisal is arranged periodically according to a definite plan. Performance appraisal is not job evaluation. Performance appraisal refers to howwell; someone is doing the assigned job. Job evaluation determines how much a jobis worth, to the organization and therefore, what range of pay should be assigned to the job.

PERFORMANCE APPRAISAL PROCESS: Establishing the Performance appraisal standards Communicating the standards to employee Measuring the actual performanceComparing the actual performance with standard performanceDiscussing about appraisalTaking corrective action