Why is performance appraisal important in any organization?

Performance appraisal is important in organizations because it helps evaluate how well an employee is doing their job. It gives the employee a chance to see what they are doing well and what they need to improve on. This information can help them grow in their job and become better at what they do. The manager can also use the appraisal to help plan for the employee’s future development and training. Performance appraisals also help the company understand how well its employees are working and what areas need improvement. This information can be used to make decisions about promotions, pay raises, and other benefits. Overall, performance appraisal is important because it helps both the employee and the company to be successful.