Performance Appraisal
A formal review of an employee's work over a cycle, usually annual, that drives ratings, hikes, bonuses, and promotions.
What is Performance Appraisal?
Performance appraisal is the structured review process where managers assess an employee's contribution against agreed goals, behaviours, and KRAs over a fixed cycle. In India, the cycle is usually April to March (aligned with the financial year) or January to December. The output is a rating, often on a 1-5 or 1-4 scale, plus decisions on increments, variable pay, and promotions. Modern appraisals include self-review, manager review, peer feedback (360-degree), and a calibration discussion across departments to keep ratings fair. Continuous feedback during the year reduces surprises in the final review.
How Performance Appraisal is used
Run two appraisal cycles in growing companies, one mid-year for course correction and one annual for hike decisions. Document specific examples, not vague statements like 'good attitude'.
Performance Appraisal FAQs
What is the difference between appraisal and increment?
Appraisal is the review process. Increment is one of its outcomes. You can have an appraisal without an increment, especially in tough business years.
How long should an appraisal discussion take?
A proper one-on-one needs 45-60 minutes. Rushed 15-minute reviews leave employees frustrated and don't capture real feedback.
Can an employee dispute an appraisal rating?
Yes. Most companies have a grievance or skip-level review process. The employee should raise it in writing within the cycle window mentioned in the HR policy.