What is the purpose of performance appraisals in HRM?

The purpose of performance appraisals in Human Resource Management (HRM) is fundamentally to assess employee performance and inform decisions. These evaluations provide structured feedback to employees regarding their job performance, strengths, and areas for improvement. This process is crucial for several reasons.

First, performance appraisals help organizations identify high performers, which can guide decisions on promotions, bonuses, or additional responsibilities. Assessing performance accurately allows managers to recognize and reward employees who contribute significantly to the organization's goals.

Second, they serve as a development tool by highlighting areas where employees may need further training or support. This not only aids in individual career growth but also enhances overall organizational effectiveness through better-trained personnel.

Moreover, performance appraisals help ensure that employees understand how their roles align with the organization's objectives. This alignment fosters motivation, productivity, and engagement by clarifying expectations and encouraging employees to perform at their best.

In contrast, limiting employee raises or creating conflict among team members contradicts the primary goal of appraisals, which is to promote understanding and development within the workforce. Replacing regular feedback mechanisms is also not aligned with the purpose of appraisals, as they should complement ongoing performance discussions rather than serve as a standalone event. Regular feedback is vital for continuous improvement,