An appraisal review is a formal evaluation process where an employee’s performance over a given period is assessed.

It is a systematic process where an organization evaluates an employee’s job performance over a given period. The aim is to provide feedback. This includes recognizing achievements and identifying areas for improvement. It also involves aligning individual performance with organizational objectives (Investopedia, 2025). It typically happens through a formal meeting between a manager and an employee. This meeting is supported by documentation and rating tools (HiPeople, 2025).

The appraisal review rates an employee’s job performance. It also rates achievements, strengths, and areas for improvement. The aim is to provide feedback, set future goals, and align individual performance with organizational objectives.

Key Features of an Appraisal Review.
• Performance Evaluation
Evaluation measures how well an employee has met agreed objectives and performance standards.

• Feedback Session
It provides constructive feedback on strengths, weaknesses, and behaviors.

• Goal Setting
It establishes new or revised performance objectives for the next review period.

• Development Planning
It  identifies training, mentoring, or coaching needs to support employee growth.

• Two-way Communication
It encourages dialogue between manager and employee. It is not just a one-sided assessment.

• Documentation
The review needs to recorded formally for HR and organizational purposes.

The Appraisal Review Process

The process typically follows these seven steps:

1. Set Performance Objectives
The performance criteria are defined in measurable terms, often aligned with organizational strategy (Retorio, 2025).

2. Monitor and Record Performance.

Continuous observation is done to ensure fairness and reduces bias (Investopedia, 2025).

3. Evaluate Against Standards.

Employee performance is compared with predefined expectations to highlight strengths and weaknesses (Gartner, 2025)

4. Appraisal Review Meeting

A structured discussion is held between the supervisor and the employee. During this discussion, feedback is shared. Goals are reviewed or reset (Youth Employment UK, 2025).

5. Identify Strengths and Areas for Improvement

With a balanced focus recognition of performance is done and development opportunities are provided (GetJop, 2025).

6. Develop Action and Training Plans.
This is where employees and managers agree on steps for performance improvement and career development ( AIHR, 2025).

7. Follow-up and Continuous Monitoring.

Ongoing check-ins strengthen accountability and sustain improvement (Retorio, 2025; AIHR, 2025).

Appraisal reviews and Performance

Appraisal reviews are important for improving performance. This is because they serve as both a performance checkpoint and a development tool for employees and the organization. Their importance improving performance include:

1. Clarifying Expectations and Standards

An appraisal review makes job roles, performance standards, and targets explicit. They:
• Make employees to understand exactly what is expected of them.

• Enable address any misunderstandings about duties or goals reducing confusion.

• Help employees focus their efforts as expectations are made clear.

2. Identifying Strengths and Weaknesses

Reviews give an opportunity to acknowledge achievements and spot skill gaps. They make employees leverage their strengths for greater contribution. It also helps employees to address their weaknesses through targeted training, coaching, or support.

3. Providing Constructive Feedback

Feedback during appraisal reviews helps employees understand how they’re doing and what needs improvement. Positive feedback reinforces good performance. Corrective feedback gives specific guidance for change. Timely feedback prevents poor habits from becoming entrenched.

4. Enhancing Motivation and Engagement

When employees feel their work is recognized and valued, motivation improves. Fair recognition builds morale. Discussion of career growth opportunities encourages commitment. Motivated employees tend to be more productive and innovative.

5. Aligning Individual Goals with Organizational Goals

Appraisal reviews link personal performance objectives to the organization’s strategy. Employees are able to see how their work contributes to the big picture.

6. Supporting Career Development and Training Plans

Through reviews, managers can identify training needs and career aspirations. Through this personalized development plans can be created. They also support succession planning by preparing employees for future roles building a culture of continuous learning.

7. Strengthening Manager–Employee Communication

Regular review discussions improve trust and open communication channels. Employees feel more comfortable raising concerns. Managers gain better insight into workplace challenges which creates a collaborative approach to solving problems.