Performance appraisal is the process of assessing and documenting an individual’s job performance. This can either be done formally, through measuring an employee’s goals and objectives, or informally, by conducting surveys with stakeholders such as customers and peers. The purpose of performance appraisals is to identify areas for improvement, reward good performance and aid in career development. There are various methods used when appraising an employee’s performance, such as 360-degree feedback, annual reviews, goal setting and self-evaluation. By taking the time to assess an individual’s job performance and design a clear action plan for their future development, organizations will be able to better value the strengths and weaknesses of their employees and create a more productive and satisfied workforce.