It is a regular review process used by companies to evaluate the performance and contribution of their employees. It helps companies know and evaluate just how much an employee is offering to the company and if he is an asset or not. Depending on this documented evaluation results, companies decide whether the employee needs to be promoted, demoted, retrained or terminated.
There are several methods to appraise the performance of company’s employees. We can broadly categorize the performance appraisal methods into two:
- Traditional
- Modern