Description of Performance Appraisal System


Performance appraisal serves the purpose of having a deeper look into the performance delivered and efforts applied by the employee. It provides an opportunity for the management to review the performances of the workforce and reward the deserving ones while providing opportunities for improvement. Though there are several performance appraisal systems currently in use depending upon the working environment, nature of the job, law of the land, the nature and size of the company. A typical performance appraisal system can be created as follows;

We will write a
custom essay
specifically for you

for only $16.05 $11/page
308 certified writers online
Learn More

Management by Objective (MBO) approach

This approach is also known as the goal setting approach is one of the earliest methods through which the performance of an individual can be appraised. To carry out the review and appraisal, we need to consider the following few points.

  • The objectives must be clearly defined.
  • Means of achieving those objectives must be within easy reach of the employee.
  • Objectives must be communicated to the concerned employees
  • The objectives must be quantifiable and measurable
  • The objective should be challenging yet achievable

The process of setting objectives

The advantage of such a method is that the evaluation is based on the actual performance of the individual instead of relying on the acquired qualifications/ skills required for the jobs. The process of setting objectives includes the steps like;

  1. Defining a clear statement about the objectives
  2. Defining the action plan for achieving the targets/ objectives
  3. Providing ample opportunity to the employee to implement the plan/s.
  4. Appraisal process based on the performance towards attaining the desired objectives
  5. If required, communicating a corrective or adaptive plan to avoid a shortfall in achievement of the objectives next time.
  6. Rewarding the good performances
  7. Setting up new objectives for the next year/ next quarter/ next month or next week etc.

Some of the objectives that could be part of such performance appraisal are:

  • To prepare the monthly reports by the 5th day of next month
  • To rectify the faults in the computer system of the customer within two working days of lodging the complaint.
  • To achieve the daily targets in production of 25 good units
  • To prepare a total of 50 boxes for shipping daily
  • To collect the payments of 25 customers daily
  • To enroll at least 5 customers per week for the rewards program against a predefined limit of credit card usage.

To deliver the cars ordered by the customer within three hours of his depositing the payment, that too with all formalities completed.

Print Сite this

Cite this paper

Select style


StudyCorgi. (2021, September 15). Description of Performance Appraisal System. Retrieved from

Work Cited

"Description of Performance Appraisal System." StudyCorgi, 15 Sept. 2021,

1. StudyCorgi. "Description of Performance Appraisal System." September 15, 2021.


StudyCorgi. "Description of Performance Appraisal System." September 15, 2021.


StudyCorgi. 2021. "Description of Performance Appraisal System." September 15, 2021.


StudyCorgi. (2021) 'Description of Performance Appraisal System'. 15 September.

This paper was written and submitted to our database by a student to assist your with your own studies. You are free to use it to write your own assignment, however you must reference it properly.

If you are the original creator of this paper and no longer wish to have it published on StudyCorgi, request the removal.