Objectives of Performance Appraisal

Data relating to performance assessment of employees are recorded, stored, and used for several purposes. The main purposes of employee assessment are,

  1. To effect promotions based on competence and performance.
  2. To confirm the services of probationary period satisfactorily.
  3. To assess the training and development needs of employees.
  4. To decide upon a pay raise where regular pay scales have not been fixed.
  5. To let the employees know where they stand in so far as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development.
  6. To improve communication.
  7. Finally, performance appraisal can be used to determine whether Human Resource Programmes, such as selection, training, and transfers have been effective or not.