A performance appraisal is a formal, structured process for evaluating an employee’s work against pre-set expectations over a period, resulting in a documented rating that typically feeds increment, promotion or improvement decisions.

How the cycle usually runs in India

Most Indian companies run appraisals annually or half-yearly. The typical flow starts with goal-setting at the cycle’s beginning, runs through periodic check-ins, and closes with a self-evaluation by the employee, a manager evaluation, often a calibration step to keep ratings consistent across teams, a feedback conversation, and a final documented rating that flows into the increment or promotion decision. Self-evaluation has become a near-universal step before the manager’s rating is finalized, since it surfaces where the employee’s and manager’s views diverge before the conversation happens. Many companies now layer continuous, informal feedback between the formal review points rather than saving everything for one annual conversation.

Frequently asked questions

Is a performance appraisal the same as performance management?

No, performance management is the broader, ongoing system, goal-setting, coaching, feedback. The appraisal is the periodic formal checkpoint inside it.

How does self-appraisal factor into the final rating?

It’s submitted before the manager finalizes their view, and gaps between the two often become the focus of the review conversation itself. See self-appraisal.

What typically happens after the rating is finalized?

It feeds into the increment cycle, promotion decisions, and sometimes a performance improvement plan if the rating falls below expectations.

See salary increment for how ratings typically translate into pay changes, and our HR metrics that matter guide.