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Ans. Performance appraisal is a system used by the organizations to evaluate the performance of their employees whether they are capable of attaining the expected results by the superiors or not. If the employees are able to meet the expectations of their employers and performed well then, they are recognized, praised, and appreciated by their employers in front of their peers and subordinates which helps in motivating the employees. It is very necessary to motivate the employees whenever they have performed well because it will help in boosting their morale and they feel like the valued part of the organization. The employees who are not able to meet the expectations of their employers or did not perform well must be given the feedback of their performances by combining their positives and negatives without using any harsh words so that they cannot lose their morale and motivation must be given to bad performers also so that they can improve their performance in the future. With the help of performance appraisals, the organizations are capable of understanding the strengths and weaknesses of their employees. Performance appraisals are also needed in order to ascertain the amount of salary to be given to the employees according to the level of their performances in the organization.
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