What is a "performance appraisal" used for?

A performance appraisal is primarily used to evaluate employee performance. This process involves assessing how well employees meet their job responsibilities, performance objectives, and overall contributions to the organization. It provides a structured way for managers to give feedback, identify strengths, and pinpoint areas for improvement, thereby facilitating professional development and career growth for employees.

Performance appraisals can inform decisions related to promotions, raises, and other personnel actions, as they contribute to a comprehensive understanding of each employee's contributions to the workplace. This evaluation typically includes specific criteria such as productivity, quality of work, teamwork, and adherence to company values, allowing organizations to maintain high performance standards and motivate employees.

While other options may seem relevant in different contexts, they do not capture the primary function of a performance appraisal. For instance, budget allocation pertains to financial planning rather than individual performance assessment, operational risks deal with the potential adverse outcomes affecting the organization, and outreach goals relate to communication and engagement strategies, which again fall outside the scope of evaluating employee performance. Thus, the function of performance appraisal is distinct and critical for workforce management and development.