Why Are Performance Appraisals Important?

Importance of Performance Appraisals

Brief Overview:

Performance appraisals are important for organizations to assess and improve employee performance. They provide valuable feedback, help set goals, identify training needs, and support career development.

5 Supporting Facts:

  1. Performance appraisals help employees understand how their work contributes to the overall goals of the organization.
  2. They provide a structured way to give feedback on strengths and areas for improvement, leading to increased employee engagement and motivation.
  3. Performance appraisals can help identify high-performing employees for recognition and rewards, as well as underperforming employees who may need additional support or training.
  4. They serve as a basis for setting goals and objectives for the upcoming performance period, aligning individual performance with organizational goals.
  5. Regular performance appraisals can support career development by identifying areas for growth and providing opportunities for skill development and advancement within the organization.

Frequently Asked Questions:

1. Why are performance appraisals important?

Performance appraisals are important for providing feedback, setting goals, identifying training needs, and supporting career development.

2. How often should performance appraisals be conducted?

Performance appraisals are typically conducted annually, but some organizations may choose to do them more frequently, such as semi-annually or quarterly.

3. Who should be involved in the performance appraisal process?

The employee, their supervisor, and potentially other stakeholders such as peers or clients may be involved in the performance appraisal process.

4. How can performance appraisals benefit the organization?

Performance appraisals can help the organization identify top performers, address performance issues, and align individual goals with organizational objectives.

5. What should be included in a performance appraisal?

A performance appraisal should include feedback on past performance, goal setting for the future, identification of training needs, and a discussion of career development opportunities.

6. How can performance appraisals improve employee engagement?

Performance appraisals provide employees with feedback on their performance, recognition for their achievements, and opportunities for growth and development, which can increase engagement and motivation.

7. How can organizations ensure performance appraisals are effective?

Organizations can ensure performance appraisals are effective by providing training for managers on how to conduct appraisals, setting clear expectations and goals, and following up on action plans resulting from the appraisal process.


Performance appraisals are important for organizations to assess and improve employee performance, provide feedback, set goals, identify training needs, and support career development.

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