Performance appraisal which is also sometimes called as AGR Annual General Report is set by the management (senior management) of each employee and send these reports to next level managers who on the basis of those reports decide for the rewards.
Performance appraisal is a formal process in which the employees are measured with the standard set by the organization, a file is set by the authority in which the detailed activities of the employee is recorded.
Before the commencement of job the employees are given training and a booklet in which the duties and responsibilities of the candidate is mentioned and also the standard of the organization is written which are necessary to meet for every individual.
In the performance appraisal the behavior of the employees how he do communicate with anybody, how he respond to any complex situation, how he utilizes his skills, knowledge and tribute in the contingencies.
The purpose of the performance appraisal is to identify the fault & weakness of employees where do they lack and then to suggest them how they can recover for that weakness, sometimes the training is also offered to the employees.
Professional peoples who are conducting the performance appraisal they never label their employees with negative markings neither they are bias but sometimes as we are human and we do mistakes we become bias sometimes the authority who is bias puts harshness in the marking it is also bias that they can give you favor they may give you good numbers which is known as leniency bias but again it comes into the biasness the authority must provide fair and true performance of the employees.
There are reasons for what the performance of the employees are shown as poor and they are not reward with certain awards, those who perform according to the set standard are awarded with rewards such increase in the salary to appreciate employees, to promote the employee from lower rank to higher rank for the employee recognition and sometimes shields are given such as best employee of the year, on the other hand those employee who do not perform according to the standard they can be shifted to lower position to their current position.
Poor performance occurs when the employee experiences inappropriate skills knowledge and skills they do not do such effort to make things goods they lack in their efforts, the shortness of communication may be the reason for the poor performance the job design is not well sated.