Performance Appraisal Purpose / Uses

¨The main purposes of employee assessment are as follows :

¨(1)  Identify employees who are eligible for salary increase.

¨(2)  Generate data to take personnel decisions such as promotion, transfer and lay-off or termination decision.

¨(3)  Determine the training and development needs of the employees.

¨(4)  Validate the selection process.

¨(5)  To measure whether standards laid down has been achieved by the employees or not.

¨(6)  Estimate the future requirement of work force.

¨(7)  Helps to recognise potential of promising employees.

¨(8)  Last but not the least, performance appraisal also helps in motivating employees by providing feed back about their level of performance.