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Performance Appraisal

How to Conduct a Performance Appraisal

Performance appraisals are an effective tool for informing employees about their quality of work and for identifying areas of improvement. If handled well they can be a positive and constructive experience for the employee.

What is a Performance Appraisal?

A ‘performance appraisal’, also referred to as a performance review, performance evaluation, or performance development review (PDR) is a method by which the job performance of an employee is documented and evaluated.


The objective of performance reviews, as part of a performance management process, is to improve individual performance with effective two-way communication between an employee and their manager. The intended outcome is improved overall effectiveness and efficiency within the workplace.

Specific objectives of the review process include:

  • to improve performance in the context of corporate goals and the culture of the organisation;
  • to improve the individuals understanding of their work responsibilities and performance standards expected of them;
  • to give feedback on individual performance;
  • to identify training and development needs and to develop, with management, plans to address these needs;
  • to recognise and reward performance exceeding expectations; and
  • to provide a fair basis to identify and manage unsatisfactory performance.

Managers Guide to Conducting Performance Reviews

The success of the review process primarily depends upon the ability of the manager conducting the review Often the inability or lack of skill to provide constructive feedback will do more damage than good.

NatRoad has developed a guide intended to assist managers in preparing for and conducting performance reviews.

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