What is an advantage of an appraisal system?

An appraisal system is designed to evaluate employee performance systematically and provides several benefits, one of which is performance improvement. By conducting regular appraisals, organizations can identify areas where employees excel and where they may need development. This feedback helps employees understand their strengths and weaknesses, allowing them to focus on specific skills and competencies that need enhancement.

Moreover, the appraisal process can guide training and professional development initiatives, leading to a more skilled workforce. Employees who receive constructive feedback are likely to feel more engaged and motivated to improve their performance, as they can see a clear path to advancement in their roles. This process ultimately contributes to the overall productivity and effectiveness of the organization.

In contrast, options that suggest negative consequences, such as increased costs, higher turnover, or favoritism, do not represent the intended advantages of an effective appraisal system. Instead, a well-implemented appraisal system is aimed at fostering a positive work environment where performance can thrive.