The objective of appraisal is to maintain and improve an employee's performance, realise potential and increase the effectiveness and efficiency and development needs. Appraisals regularly record an assessment of an employee's performance, potential and development needs. The assessment is then normally discussed with the employee at a job appraisal interview and future objectives agreed.It can help to improve communications and motivation by giving employees an opportunity to talk about their ideas, expectations and progress.
It’s a very profitable process and all the organizations can benefit from appraisal schemes provided they are prepared to invest the necessary time and money to set them up properly.