What is "performance appraisal" primarily used for?

Performance appraisal is primarily used to assess employee job performance. This process involves evaluating how employees have performed their duties, measuring their contributions to the organization, and providing feedback based on their performance.

This assessment is critical because it helps managers identify areas where employees excel, as well as areas for improvement. Furthermore, it serves multiple purposes such as guiding decisions related to promotions, raises, training, and career development opportunities. Regular performance appraisals also promote communication between employees and their supervisors, fostering a more engaged and productive workforce.

In contrast, evaluating company profits focuses on the financial health of the organization rather than individual employee performance. Determining benefits eligibility pertains to ensuring that employees qualify for specific benefits based on their status or tenure rather than assessing their work output. Creating new job positions involves workforce planning and organizational structure decisions, which are separate from evaluating individual job performance.