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.
The key word here is performance.The main purpose of a performance appraisal is to improve employee performance.

Question

Quizplus · Accepted Answer

The statement in the question is incorrect. The main reason firms conduct performance appraisals is to provide feedback to employees and improve their job performance. While having a record of performance can be useful in legal cases, it is not the primary purpose of appraisals.

The Main Reason Firms Conduct Performance Appraisals Is to Establish