Performance appraisal is a review of employees’ achievements and tasks performed. It is done regularly by the management and reporting managers in an organization. It is also known as an annual performance review where the total contribution added by an employee is reviewed and discussed.
Companies used performance appraisals to provide feedback to the employees, discuss growth plans and justify their efforts by paying bonuses or raising their compensation. Depending upon the policies of the organizations, it is conducted yearly, half-yearly, or quarterly. There are several types of performance reviews, the most common is a top-down review in which a manager reviews his or her direct report.