Performance appraisal has many purposes,including evaluation (for example,pay raise consideration)and development (for example,training and development planning).

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An appraisal system probably cannot effectively serve every desired purpose,so management should select the specific goals it believes to be most important and realistically achievable.For example,some firms may want to stress employee development,whereas other organizations may want to focus on pay adjustments.Many firms rely on PA results to help inform decisions to terminate employment,particularly after a regular pattern of inadequate job performance.In any case,PA serves a developmental purpose,evaluative purpose,or both.

Performance Appraisal Has Many Purposes,including Evaluation (For Example,pay Raise Consideration)and