Optimal Methods of performance appraisal in IT Sectors

Abstract

An employee’s performance is important determinant in the productivity of an organization.
There are various performance appraisal typically provides a concise summary or overview of an
individual's or a group's performance assessment within an organization. It outlines key aspects
of performance, including strengths, weaknesses, achievements, and areas for improvement. This
summary helps in evaluating an individual's contributions to the organization, setting future
goals, and making decisions regarding career development or rewards based on their
performance. Appraisal system have been greatly varied from a simple method where only a HR
Manager reviews the performance of the employees to a 360-degree feedback system where not
only the manager, but also peers, colleagues and clients are given an opportunity to review the
performance of one another. Performance Appraisals have seen a great evolution in them. this
paper focuses on the best practice in Performance appraisal and for finding out what are those
best practices are, I have selected the practices followed in some of the Fortune 500 companies.
This paper also focuses on the result that these companies are gaining due to adopting new
methods of performance appraisals.