What is a fundamental goal of performance appraisals?

Optimizing employee performance and development is a fundamental goal of performance appraisals because these processes are designed to identify an employee's strengths, weaknesses, and areas for improvement. By providing structured feedback, organizations can help employees understand how to enhance their skills and contribute more effectively to the team and organization as a whole. Regular performance appraisals foster a culture of continuous improvement and professional growth, enabling employees to reach their full potential.

In addition, performance appraisals serve as a platform for goal setting, where employees and managers collaboratively establish performance targets, thereby aligning individual objectives with organizational goals. This alignment not only enhances individual performance but also drives overall organizational success.

While ensuring compliance with government regulations, justifying salary increases, and creating competitive environments can be components of the performance appraisal process, they are not fundamental goals. These aspects may emerge as secondary outcomes, but the overarching aim remains focused on the development and optimization of employee performance.