Fill in the blank:
Performance appraisal means evaluating an employee’s current and/or past performance as against certain predetermined standards. The performance appraisal process includes defining the job, appraising performance and ______.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → providing feedback
Option (1) taking corrective action — Incorrect. Taking corrective action is a step of controlling. Managers take it when actual work falls short of the standards.
Option (2) offering a promotion — Incorrect. Promotion is a separate stage of staffing. It means being placed in a position of greater responsibility.
Option (3) providing feedback — Correct. After the performance is appraised, the superior tells the employee how he has done against the standards. This feedback is the last part of the appraisal process.
Option (4) fixing the compensation — Incorrect. Fixing compensation is another stage of staffing. Compensation means all forms of pay or rewards going to employees.
NCERT (2026-27 Edition): “(vi) Performance Appraisal After the employees have undergone a period of training and they have been on the job for some time, there is a need to evaluate their performance. All organisations have some formal or informal means of appraising their employee’s performance. Performance appraisal means evaluating an employee’s current and/or past performance as against certain predetermined standards. The employee is expected to know what the standards are and the superior is to provide the employee feedback on his/her performance. The performance appraisal process, therefore, will include defining the job, appraising performance and providing feedback.” “(vii) Promotion and career planning It becomes necessary for all organisations to address career related issues and promotional avenues for their employees. Managers need to design activities to serve employees’ long-term interests also. They must encourage employees to grow and realise their full potential. Promotions are an integral part of people’s career. They refer to being placed in positions of increased responsibility. They usually mean more pay, responsibility and job satisfaction.” “(viii) Compensation All organisations need to establish wage and salary plans for their employees. There are various ways to prepare different pay plans depending on the worth of the job. Basically the price of the job needs to be determined. Compensation, therefore, refers to all forms of pay or rewards going to employees. It may be in the form of direct financial payments like wages, salaries, incentives, commissions and bonuses and indirect payments like employer paid insurance and vacations. …” |