The performance appraisal system is part of in ongoing management process, whose purposes are to:

• Provide for systematic planning by allowing the manager to identify critical job elements and objectives;
• Conduct a systematic review of an employee's overall performance and provide constructive feedback;
• Provide objective information to guide management decisions on promotions, etc.;
• Establish an objective basis for determining annual performance merit awards (if your organization does this).

The performance appraisal system can serve not only to determine how well an employee is doing her or his job, but also to decide on ways to improve performance. During the assessment process, an employee's strengths and weaknesses can be discussed, and methods can be devised to make the most of the employee's strengths and to find ways to correct or minimize weaknesses, such as through additional training. The appraisal should show both the employee and the supervisor what the employee's possibilities for growth and development are.

The performance appraisal process is similar to that for a supervisory session, but it encompasses a longer time period, generally six months. It can involve looking at both the quantity and quality of the employee's work, at the responsibilities she or he has assumed, and at some less objective qualities that may be involved in determining a merit rating, such as the employee's intelligence, resourcefulness, and personality.

Generally during a performance appraisal, the supervisor and the employee meet to review how well the employee has met the performance objectives that were set during the previous appraisal and to set new performance objectives for the upcoming period. Because observations made during the supervision process are a component of performance planning and appraisal, it is best if this assessment is made by the employee's immediate supervisor (the person who sees the employee most often). If the appraisal is conducted by someone who rarely sees the employee at work, it is unjust to the employee and undermines the authority and the feeling of responsibility of the immediate supervisor.

In addition to assessing an employee's performance on the basis of how well she or he has met the assigned performance objectives, an organization may also set certain performance standards that it would like its employees to meet. These standards could include such things as integrity, working collaboratively with colleagues, anticipating and avoiding problems, managing time effectively, and fostering trust and cooperation.

Example from Kenya - Employee Performance Appraisal Form

Supervising and Supporting Your Staff