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360 degree is a best method for conducting of performance appraisal.
Formal performance appraisal process:
1. Self assessment by subordinate or supervisee.
2.Performance appraisal meeting date will be fixed between supervisor and supervisee.
3. Complete performance meeting.
4. Performance feedback to supervisee.
5. Address development issues by supervisor.
One of the simplest form of formal appraisal which I know is:
THE HIKE OF PAYMENT AT THE END OF YEAR OR IN APRIL OR MAY.
Identification of key performance areas
Identification of qualities for job performance
Self-appraisal
Analysis
Discussion
Identification of training needs
Action plan and goal settings for the future
Final assessment
Formal appraisal is done with the help of "Fill in" format either in paper form or using the system which incorporates--1. Self Appraisal 2. Evaluation by immediate Supervisors 3. Verification by HR Department and include the particulars of: Results,Achievements,Accreditation,External Recognition, Career Tracking particulars, your Strengths, weaknesses, areas for improvement.
All that matters is how you will be recognized with rewards either in the form increments or in the form of promotions, or with both.
The opinion of Mr. Arinjay Dadhich is appropriate and is the net outcome of the appraisal.