Step 1: Read the definition given in the question.
The question describes a step in the staffing process where an employee's current and/or past performance is evaluated against certain pre-determined standards. We need to identify this step.
Step 2: Recall the steps in the staffing process.
The staffing process includes: Manpower planning, Recruitment, Selection, Placement and Orientation, Training and Development, Performance Appraisal, Promotion and Career Planning, and Compensation.
Step 3: Evaluate option (A): Placement and orientation.
Placement is assigning the selected candidate to a specific job and introducing them to their role. Orientation is familiarising them with the workplace and their colleagues. Neither involves evaluating past or current performance against standards. So option (A) is incorrect.
Step 4: Evaluate option (B): Performance appraisal.
Performance appraisal is the systematic process of measuring and evaluating an employee's job-related behaviour and outcomes against pre-established standards. It involves reviewing what the employee has done (current and past performance) and comparing it to what was expected (pre-determined standards). This matches the question exactly.
Step 5: Evaluate options (C) and (D).
Promotion and career planning is about moving employees to higher roles based on their overall track record. Recruitment is about searching for and attracting prospective candidates, which happens before someone is even hired. Neither matches the definition given.
Step 6: Conclude.
Evaluating actual performance against pre-determined standards is the definition of Performance Appraisal.
\[ \boxed{ \text{(B) Performance appraisal} } \]