It should also help create improvement plans for employees to help them perform their best. For example, this may include identifying weaknesses and suggesting training based on them. Best Fit and Compensation: We come to the traditional roles an appraisal is supposed to play. Appraisal structures must be able to define employee performance against a measurable gauge. Based on this data, an evaluation system should offer suggestions on where the employee is best suited, whether they deserve a promotion, and what salary increase they should get. The manager must inform the employee of the amount of increase to be expected for their performance during the year. In conclusion, a performance review can improve your employee relations, improve your organization's overall performance, and improve communication between employees and manager, a bonus for customer and professional relationships. Performance appraisal is important to help evaluate the employee's job performance and become aware of his or her strengths and weaknesses. This is a way to know if the training was effective from the start of the first year of employment. Having job assessments in place ensures that the employer has made the right decision in hiring the