Q. Objectives of the Performance appraisal ?
Feedback: it serves as a feedback to the employee. It tells him what he can do to improve his present performance and go up the organizational ladder. The appraisal thus facilities self development. It also makes the employee aware of his key performance areas.
Compensation decisions: it provides inputs to system of rewards. The approach to compensation is at the heart of the idea that raises should be given for merit rather than for seniority.