Performance evaluation is a review of an employee’s accomplishments and duties completed. It is also known as an annual performance review, in which the complete contribution made by an employee is assessed and discussed. Companies use performance appraisals to provide feedback to employees, discuss growth objectives, and justify their efforts by awarding bonuses or increasing remuneration.
Performance appraisal is usually conducted regularly, with the frequency varying depending on organizational policies. Common intervals include annual, semi-annual, or quarterly reviews. It involves a two-way communication process between employees and managers. Performance appraisal often includes setting performance goals and objectives for the upcoming period. High-performing employees are often recognized and rewarded for their contributions. The appraisal identifies areas where employees can improve and grow.