Performance Appraisal is an officially recognized methodology for assessing the performance of employees or team members within a company. This assessment frequently involves setting goals, providing feedback on work performance, and offering recognition and rewards to those who reach their objectives. Through the appraisal process, managers are able to identify areas of strength and development opportunities. By focusing on these areas, they can ensure that employee performance meets standards and contributes to business success. Additionally, effective appraisals can create a positive working environment where employees feel valued, motivated and supported in their roles.