An appraisal is a regular process in an organization that means systematically evaluating employees’ performance and justifying their achievements by raising their compensation or paying them bonuses. Mostly it is an annual practice that involves assessing employees’ skills, achievements and discussing their future growth plans. Various organizations have appraisals more than once depending upon the policies.
The process helps employees to understand their value in the company and their contribution to their roles. The process plays a vital role in employee development. The entire performance appraisal process can be formal or informal depending on the call that the HR department takes. Decisions regarding the format of performance appraisals entirely vary from company to company.