Performance appraisal is used for evaluation of technical, professional and management personnel. It is also helpful in predicting future benefits of the employee, organization and society. In every organization, all employees work to achieve the common goal of the organization. The employees have individual differences. It is necessary to inform them, from time to time about their own level of performance in the organization so that their morale may be high. Objectives of performance appraisal are - determining salary standards, promotion, transfer, demotion, termination, training, communication and informing employees “where they stand. These objectives are achieved by many methods. Performance appraisal of nursing personnel comprises some characteristics. Job descriptions are written according each job. The appraisal tool used is suitable to the purpose have clear instructions for its use. The evaluators are trained. Performance appraisal is considered to be fair and productive by all. Appraisal should be based on a standard, must know in advance. Appraiser should be someone who has observed the employee’s work, the employee trusts and respects on them. Advantages of performance appraisal are ensuring/enhancing quality nursing care, motivation, job satisfaction, evaluate and improve the manager’s own performance, employees can know how well he/she is doing, what their manager thinks of their work. Common Errors are leniency, halo effect, central tendency, perpetual set, contrast error, status effect.
