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What is the main objective of performance appraisal?

ATo directly increase an employee's salary.

BTo provide feedback on an employee's workability and performance.

CTo decide on an employee's transfer to a different department.

DTo encourage managers to suggest new ways to improve performance.

Answer:

B. To provide feedback on an employee's workability and performance.

Read Explanation:

  • A performance appraisal is a review or discussion about an employee's performance and career development. The aims of performance appraisal include demonstrating employees' feedback on their workability, finding employee training requirements, and laying down benchmarks for organizational rewards.


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  1. Vertical promotions involve a change in job classification with increase in responsibilities and pay.
  2. Dry promotions involve increase in pay but no change in responsibilities.
  3. Versatility transfers are made to reduce boredom and train employees in multiple skills.
  4. Remedial transfers are to correct mistakes in selection and placement.
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