Performance appraisal.

Performance appraisal is the process of evaluating an employee's performance and providing feedback. Appraisals are necessary not only for employees to understand and improve their performance on the job and for employers to adequately evaluate and select their employees for rewards (e.g., money, prestige, promotion), but it is also important so that the organization can determine the degree to which its employees are contributing toward meeting strategic goals and objectives. There are many ways to judge an employee's performance on the job ranging from objective performance data to global rating scales to more detailed rating scales that represent each of the important aspects of the job. No matter the method used, however, it is vital that the rating scales be anchored to objective, well-defined criteria of job success. This will help ensure that the performance appraisal system is not only accurate but also fair.