What purpose does performance appraisal serve?

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Let us start by defining a performance appraisal. Essentially, it is a meeting at which an employer has the opportunity to discuss with an employee what he or she has or has not achieved.

For the employee, a performance appraisal may be immensely stressful, but it has a two-fold purpose. Firstly, it gives the employee insight into areas of the job in which he or she is doing particularly well. This provides a boost in morale, and also often comes with an increase in wages.

Secondly, performance appraisals can help to prevent termination of employment, by giving an employee insight into areas where they are not doing so well or need to learn more.

Essentially, a performance appraisal is a way to keep the channels of communication between an employer and an employee open and give everyone a chance to lay their cards on the table.

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Performance appraisal serves two very important purposes.  One of these is to evaluate employees in terms of the quality of their performance.  The other is to help the firm develop better employees and better procedures.

Performance appraisals are important for evaluating employees.  It is important to know which employees are performing their jobs efficiently and effectively.  This is important for the purpose of deciding about things like pay and promotions.

However, performance appraisals are also important for developing a better firm and work force.  Appraisals tell the firm which things its employees are and are not doing well.  This can help them to know what traits to look for in future hires.  It can also tell the firm what things it needs to improve in terms of its training procedures.

In these ways, performance appraisals can be used for two major purposes.

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