What is the primary purpose of an employee performance appraisal?

The primary purpose of an employee performance appraisal is to assess job performance and provide feedback. This process allows employers to evaluate how well employees are meeting their job responsibilities and objectives. By conducting performance appraisals, management can identify areas where employees excel and where there is room for growth, both for the individual and the organization.

Feedback given during appraisals is crucial for employee development, as it helps individuals understand their strengths and weaknesses, encourages them to engage in self-reflection, and guides them on how to enhance their performance. Furthermore, these appraisals can aid in setting future goals and making informed decisions about career development opportunities.

While aspects like promotions, salary increases, and setting company policies may be influenced by performance appraisals, the central focus remains on evaluating performance and fostering a space for constructive feedback, which is essential for ongoing employee engagement and improvement.