What is the primary purpose of performance appraisal ratings?

The primary purpose of performance appraisal ratings is to provide a standardized way to evaluate and compare employee performance. This framework allows organizations to objectively assess how well employees meet established performance criteria and goals. By using consistent metrics and evaluation methods, organizations can ensure that performance reviews are fair and unbiased, leading to more informed decision-making regarding promotions, raises, training needs, and overall employee development.

Standardized ratings help align employee performance with the organization’s objectives, facilitating effective feedback and communication between employees and managers. Additionally, these appraisals can identify high performers for recognition and development, and also highlight areas where employees may need support or training to improve their contributions to the organization. Thus, the use of performance appraisal ratings is crucial for the effective management of talent within a company.