Purpose of Performance Appraisal

•1. To create and maintain a satisfactory level of performance.
•2. To contribute to the employee growth and development through training, self and management development programmes.
•3. To help the superiors to have a proper understanding about their subordinates.
•4. To guide the job changes with help to continuous ranking.
•5. To facilitate fair and validating selection tests, interview techniques through comparing their scores with performance appraisal ranks.
•6. To provide information for making decisions regarding lay off, retrenchment etc.
•7. To ensure organisational effectiveness through correcting employee for standard and improved performance, and suggesting the change in employee behaviour.