performance appraisal

• performance appraisal is a review of an employees' performance and is usually carried out by the employee's direct manager or HR manager
• step 1 - set performance targets - the employee and hr manager meet to set the targets to be achieved by the employee within a particular time frame
• step 2 - measure employee performance - the hr manager meets with the employee on a regualr basis to measure and track progess - the employee may be given additional help from management to achieve the target
• step 3 - performance appraisal meeting - the HR manager and employee meet for the formal performance appraisal - compares the targe set against the actual performance achieved by employee - may receive pay increase if targets are met and additional training if not
• benefits of performance appraisal - training needs, promotion, performance-related pay, employee motivation and industrial relations