It should also help you create improvement plans for employees to help them do their best. For example, it may include identifying weaknesses and suggesting training courses based on them. Better fit and compensation: We come to the traditional roles that an assessment should play. Evaluation structures should be able to define employee performance against a measurable indicator. Based on this data, an evaluation system should make suggestions regarding where the employee fits best, whether he or she deserves a promotion, and the salary increase the person should get. The manager should inform the employee of the amount of increase expected for his performance during the year. In conclusion, a performance appraisal can improve relationships with employees, improve the overall performance of the organization, and improve communication between employees and managers, a bonus for customer and business relationships. Performance appraisal is important to help evaluate employee job performance and be aware of employee's strengths and weaknesses. It's a way to know if the training has been effective at the beginning of the first year on the job. With job assessments in place it ensures that the employer has made the right decision in hiring the