1. Purpose: The main purpose of performance appraisal is to assess employees' work performance, provide feedback and take necessary measures to improve performance. Help companies and organizations to clarify business objectives and transform abstract strategic goals into concrete measurable indicators, thereby improving efficiency and quality of work.
2. Significance: Through regular performance appraisals, employees can understand their strengths and areas for improvement, providing employees with the direction and methods to develop their skills and professional abilities. Performance appraisals are usually used as an important basis for establishing a fair compensation system, ensuring that wages are proportional to performance, motivating employees to work harder, and also helping to maintain a fair and equitable compensation structure.