A trial performance to evaluate a performer's merits
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Self-development is the most important benefit for the employee. Performance appraisal allows you to provide positive feedback as well as identifying areas for improvement. An employee can discuss and even create a developmental (training) plan with the manager so he can improve his skills.
It motivates employees if supported by a good merit-based compensation system. Best performers get better pay and benefits packages. Similarly, those employees that lag behind get penalized.
It provides a structured process for an employee to approach the management for discussions, identify problems, clarify expectations and plan for the future. It lets both manager and employee set up long- and short-term goals.
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