The main reason firms conduct performance appraisals is to establish a formal record of job performance that will protect them from lawsuits filed by unhappy workers.

Name: The main reason firms conduct performance appraisals is to establish a formal record of job performance that will protect them from lawsuits filed by unhappy workers.
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The key word here is performance. The main purpose of a performance appraisal is to improve employee performance.

The Main Reason Firms Conduct Performance Appraisals Is to Establish