The main characteristics of performance appraisal are:
a. Performance appraisal provides an objective description of an employee’s job related strengths and weaknesses.
b. It is a systematic process. A number of logical steps are followed to evaluate employee’s strengths and weaknesses.
c. The appraisal is carried out periodically, according to a definite plan. It is certainly not a one-shot deal.
d. It tries to find out how well the employee is performing the job and tries to establish a plan for further improvement.
e. Performance appraisal may be formal or informal. The informal evaluation is more likely to be subjective and influenced by personal factors. Some employees are liked better than other and have, for that reason only, better chances of receiving various kinds of rewards then others. The formal system is likely to be fairer and objective since it is carried out in a systematic manner, using printed appraisal forms.