Appraisal

Definition and Meaning

Performance appraisal is an organised way for a business to determine how well an employee performed, what skills the employee used, and how the employee’s contribution impacted the organisation during a specific time frame, as established by company guidelines. Human Resources (HR) uses performance appraisal to measure an employee’s achievement of goals, develop training needs, and determine whether or not to increase pay, promote them, or transfer them within their current job description.

Key HR Highlights

• Employee performance is measured against set goals.
• Salary revisions and promotions are based on employee performance.
• Training/development needs identified for employees.
• Employee engagement improved via structured feedback.
• Managed and tracked through performance management systems and HRMS.

Legal Compliance 

There is no specific statutory law that requires assessment. But:

• Assessment processes should be in accordance with the company’s performance management guidelines.
• Any salary change must comply with the applicable salary laws and statutory deductions.
• Fair & transparent assessment helps reduce disputes and employee complaints.

“There is no specific statutory compliance directly linked to the assessment.”