What is the main purpose of conducting a performance appraisal?

The main purpose of conducting a performance appraisal is to assess and improve employee performance. This process is essential for identifying strengths and areas for improvement within an employee's work. By evaluating performance, organizations can provide constructive feedback, recognize achievements, and set clear expectations.

This focus on assessment goes beyond merely evaluating current performance; it also emphasizes development. Effective performance appraisals can guide employees in their career growth, help align their personal goals with organizational objectives, and foster a culture of continuous improvement. This is crucial for both the individual and the organization as a whole, leading to increased productivity, enhanced job satisfaction, and better overall performance.

While justifying salary increases and determining an employee's next role may be components of the appraisal process, these are not the primary focus. Similarly, eliminating underperformers is a more negative outcome that is not aligned with the constructive intent behind performance appraisals. The central aim is ultimately about growth and development rather than merely punitive measures.