2.1 Definition of Performance Appraisal
The term “performance appraisal” refers to the assessment, at regular period of time, of an employee’s performance at work.
Performance appraisal has been defined as the distinct, formal, organizationally sanctioned event, usually occurs once or twice a year, which has clearly stated performance aspects or criteria that are used in the evaluation process. Other than that, it is an evaluation process, where quantitative scores are assigned based on the judged level of the employee’s job performance on the dimensions used, and the scores are shared with the employee being evaluated. (Denisi and Pritchard, 2006)
2.2 Purpose and advantages of the performance appraisal
Understanding the role, objectives, benefits and purpose of PA is important to all employers. Base on Malcolm and Jackson (2002), there is three main purpose of appraisal. First is to measure the extent to which an individual may be awarded a salary increase compared with his or her peers. This is the reward review component. Second, performance review, is to identify any training needs and, if needed, to provide training and development to enable an individual to help the organization to achieve