Purposes of Appraisal

Appraisal of employees serves several useful purposes:

  1. It can serve as a basis for job change or promotion.
  2. By identifying the strengths and weakness of an employee it serves as a guide for formulating a suitable training and development programme to improve his quality of performance in his present work.
  3. It serves as a feedback to the employee.
  4. It serves as an important incentive to all the employees.
  5. The existence of a regular appraisal system tends to make the supervisors and executives more observant of their subordinates.
  6. Performance appraisal often provides the rational foundation for the payment of piece-work wages, bonus, etc.,
  7. Performance appraisal serves as means for evaluating the effectiveness of devices used for the selection and classification of workers.
  8. Permanent performance appraisal records of employees help management to do planning without relying upon personal knowledge of supervisors who may be shifted.