Performance appraisal is a process used by organizations to assess the performance level of their employees and provide them with feedback. This process can be used for both administrative and developmental purposes. Although PA is an important tool for managing managers and employees, workers are rarely satisfied with it. Therefore, clearly defining the purposes of the PA and addressing the employees’ reactions are essential to the success of the appraisal. Primary goals for performance appraisal are: (1) to provide adequate feedback to each person on his or her performance; (2) to serve as a basis for modifying or changing behavior for dynamic working habits; and (3) to provide data to managers in which they may judge future job assignments and compensation.
