Performance appraisal has three basic functions: (1) to provide adequate feedback to each person on his or her performance; (2) to serve as a basis for modifying or changing behavior toward more effective working habits; and (3) to provide data to managers with which they may judge future job assignments and …

What is performance appraisal and its purpose?

A performance appraisal is a regular review of an employee’s job performance and contribution to a company. Companies use performance appraisals to determine which employees have contributed the most to the company’s growth, review progress, and reward high-achieving workers.

What are the two main purposes of performance appraisals explain each?

There are two primary purposes of performance appraisal: evaluative and developmental. The evaluative purpose is intended to inform people of their performance standing. The collected performance data are frequently used to reward high performance and to punish poor performance.

What are the four purposes of performance appraisal?

Identification of development points, training needs and forecasting for future. Increased job satisfaction, motivation and self-worth. Improved group performance. Opportunity to clarify expectations of individuals and teams, re-assess work goals and discuss what has worked well and what needs improvement.