Performance Appraisal is a systematic evaluation of an employee’s job performance, productivity, and contributions to the organization over a specific period. It helps businesses assess individual strengths, identify areas for improvement, and align employee goals with company objectives. Appraisals often include feedback from managers, peers, or self-assessments and can influence promotions, salary increments, training needs, and career growth opportunities.

Industries like manufacturing, retail, logistics, e-commerce, and facility management services (FMS) use performance appraisal systems to enhance workforce productivity, boost employee engagement, and retain top talent. For businesses managing contract workers, gig employees, apprentices, and blue-collar workforce, structured performance evaluations help in tracking efficiency, recognizing high performers, and implementing skill development programs. By leveraging HR software with automated appraisal tools, companies can streamline evaluations, ensure fair assessments, and drive organizational success.