Performance appraisal may be defined as a systematic, periodic evaluation of the worth of an individual to an organization, usually, made by a superior or someone in a position to observe his performance. Generally performance appraisal is systematic evaluation of an individual with respect to his performance on the job and his potential for development.
It revels the developmental need of an individual Performance Appraisal involves a systematic, periodic and as far as humanly possible, an impartial training of an employee’s excellence in matters pertaining to his present job and to his potentialities for further development.
The major purposes of a formal systematic appraisal are:
(i) To get the individuals knows formally how their current performance is being rated.
(ii) To locate individual who need training.