Performance appraisals are geared towards helping employees realize their potential, evaluate their levels of performance, increase morale and help to determine the areas where the employee needs help or additional training tools. This helps the individual not only to be a better employee but also to let the employee know what they are doing that has been above expectations.
Employers benefit from performance appraisals by increasing the effectiveness of the organization. Supervisors and managers benefit through the communication efforts that performance appraisals require. The employment relationship is more open and honest. Employees know what is expected of them and managers/supervisors will feel more confident in their role as a supervisor.
Performance appraisals systems are customized to organizational needs from the very basic for companies that are not ready for fully integrated systems to customized online solutions for the extremely savvy, connected organizations.