You learned about performance management in the previous lecture. Let's begin learning about performance appraisal. In simple words, performance appraisal means a method to evaluate the employee's performance against certain standards. These standards are preset, or determined in advance. performance appraisal is known by different names or tops like performance evaluation, or performance review. It's also known as employee appraisal or annual review.

Performance appraisal is considered a part of carrier development of an employee because it helps in assessing the performance and capabilities. Why performance appraisal is done. The aim to perform this evaluation is to know the potential have employees so that they can be offered different tasks and challenges. performance appraisal is also essential because it helps in promoting or transferring the employees based on how he or she performs. Please head to the next lecture to see how performance appraisal is done.