Both formal performance appraisal and informal performance appraisal are most important but there is some certain difference between formal and informal performance appraisal.
We should know these differences for a better understanding of formal and informal performance appraisals.
Difference between formal and informal performance appraisal
Formal performance appraisals usually occur at a specified time organization to evaluate employee performance.
Informal performance appraisals can occur whenever the supervisor feels communication is needed.
For example: If the employee has been consistently meeting or exceeding standards. An informal performance appraisal may be in order simply to recognize this fact.
Discussions can take place in a variety of places in the organization ranging from the manner’s office to the cafeteria. Of course, it is always wise to discuss employee performance in private:
Many organizations encourage a combination of both formal and informal; appraisals. The formal appraisal is most often used as the primary evaluation however, the informal appraisal is very helpful for more frequent performance feedback.
Informal appraisals should not take the place of formal performance evaluations.
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small but effective content you describe major difference of formal and informal performance appraisal.
It is important to have information performance discussions with an employee to encourage and/or make small changes in behaviors, if needed.