Performance appraisal is the systematic evaluation of employees with respect to their performance on their job and their potential for development. In other words, it is the process of measuring productivity in terms of efficiency and effectiveness.

1. PURPOSES OF
PERFORMANCE
APPRAISAL
PURPOSES OF
PERFORMANCE
APPRAISAL

2. EVALUATION

3. Provide
Continuous
Feedback

4. Measure
performance
accurately

5. Provide clarity of
EXPECTATION
and actual RESULT

6. IDENTIFY
area of weakness
of EMPLOYEES

7. Determine TRAINING
and DEVELOPMENTAL
needs

8. EMPLOYEE
PROMOTION

9. TAKE
CORRECTIVE
ACTIONS

10. Decide
retention
termination
of employeesAND

11. EVALUATE
EFFECTIVENESS
OF HRM
FUNCTIONS

12. Decide SALARY
& REWARDS

13. REDUCE
GRIEVANCES

14. KEEP COMMUNICATION LINES OPEN

15. MOTIVATE
SUPERIOR
PERFORMANCE

16. IMPROVE
DECISION MAKING
ABILITY

17. http://businesstopia.net/human-resource/purposes-
performance-appraisal
http://businesstopia.net/hrm