Performance Appraisal offers several advantages.

a. Individual
At an individual level performance appraisals offer a number of advantages. These include:
• Recognition of past effort
• Developmental requirements can be uncovered
Research has consistently demonstrated that these advantages are extremely important for an individual. To illustrate, without recognition for past efforts it can be difficult to consistently motivate an individual to engage in future developments.
b. Team
In addition to the benefits achieved at an individual, a number of team benefits come straight to mind. These include:
• Alignment of effort with objectives
• Motivation of team members
To illustrate, the effectiveness of any team is clearly aligned to the set objectives of the team. As a result, if there is no opportunity to feedback to the team in a trusting and transparent setting the team will not know where they collectively are in relation to those objectives.
c. Organization
The resultant advantages to organization thus become evident:
• Development of staff
• Achievement of key objectives
• Best and focused utilization of human resources
d. Overall Benefits of Appraisals
• Increased employee performance
• Greater control of work
• Improved motivation and commitment
• Increased information flow
• Better relationships within & across the organization