What is the focus of performance appraisals?

The focus of performance appraisals lies in assessing employee performance in relation to set objectives. This process entails evaluating how well an employee meets predetermined goals and expectations within their role. Performance appraisals serve to measure individual contributions, identify strengths and areas for improvement, and facilitate constructive feedback. By comparing an employee's actual performance against established objectives, employers can make informed decisions regarding promotions, raises, training needs, and overall employee development.

While establishing team goals, reducing operational costs, or developing new company policies may be related to organizational performance, they do not represent the primary purpose of performance appraisals. Those elements can be part of broader organizational strategies but are not the direct focus of evaluating individual employee contributions and effectiveness. The emphasis on performance in relation to specific objectives helps in aligning employee efforts with the organization's goals and encourages accountability and continuous improvement.