=> To promote the employees, on the basis of performance and competence.
=> To identify the requirement for training and development of employees.
=> To provide confirmation to those employees who are hired as probationary employees, upon completion of the term.
=> To take a decision regarding the hike in employees pay, incentives etc.
=> To facilitate communication between superior and subordinate.
=> To help employees in understanding where they stand in terms of performance.
Data obtained from the appraisal of performance, are documented and used for different organizational purposes.