What is the purpose of performance appraisal in the workplace?

The purpose of performance appraisal in the workplace fundamentally revolves around evaluating an employee's job performance and identifying potential areas for development. This process allows organizations to assess how well employees are meeting their job responsibilities and objectives. By evaluating performance, employers can provide constructive feedback, recognize accomplishments, and identify skills or competencies that may need further development.

Additionally, performance appraisals serve to align employee goals with the broader objectives of the organization, ensuring that everyone is focused on contributing to the company's success. This evaluation often leads to personal development plans that can enhance an employee's skills and prepare them for future roles, thereby benefiting both the individual and the organization.

While other options mention aspects that may tangentially relate to performance appraisals—such as personal relationships or salary increases—the core focus remains on performance evaluation and development, making it the most suitable option.