Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is the first step in the performance appraisal process?

1. Establish criteria for assessment

2. Gather employee feedback

3. Schedule the review meeting

4. Submit the employee's report

The correct answer is: Establish criteria for assessment

Establishing criteria for assessment is a crucial first step in the performance appraisal process as it lays the foundation for the entire evaluation. By determining clear and measurable criteria, organizations ensure that the appraisal is fair, objective, and relevant to the employee’s role and responsibilities. This step helps to define what is expected from employees and what performance indicators will be used to assess their contributions. Once the criteria are established, it becomes easier to gather feedback, schedule review meetings, and ultimately submit reports based on a standardized framework, ensuring that all employees are assessed against the same benchmarks. This systematic approach not only aids in consistency but also promotes transparency within the appraisal process.