• Performance appraisals provide a helping hand to supervisors and employees.helping hands image by Wingnut Designs from Fotolia.com
  
  Performance appraisals provide an opportunity for supervisors to assess, coach and reward their employees. Many supervisors may avoid administering performance reviews because of the fear of criticizing their employees, doing paperwork or consuming excessive time. Employees may fear negative feedback, being refused a raise or punished for issues out of their control. Despite the risks, performance appraisals have many benefits for the employees and supervisors.
  
  

Motivate Employees

• Supervisors should provide tangible incentives to motivate employees.keyboard with -motivate- button image by air from Fotolia.com
  
  Performance appraisals enable supervisors to formally recognize the achievements and contributions of their employees. Appreciation of their subordinates results in increased retention of highly productive employees. During performance appraisals, supervisors may use incentives, such as raises and promotions, to further motivate employees. If supervisors remain positive during the review meeting, it may have the effect of increasing workplace morale.
  
  

Increased Employee Productivity

• Supervisors use performance appraisals to help employees better understand their role within the framework of company goals. If employees know that they are an integral component to the overall performance of the company, they will feel more accountable for their duties. If supervisors accurately identify weakness and assist employees in improving these areas, it increases the productivity of the employee. In the long term, the company can save money and increase profits.
  
  

Improve Areas of Weakness

• Performance appraisals expose employees' weaknesses and enables them to improve for further career development. If an employee desires to become a manager, yet leadership skills are lacking, performance reports reveal this incompetency. Employees use reviews to expand their skill base and focus on areas that need coaching and education. Performance appraisals also assist employees in deciding if they are in the industry that matches their values and personality.
  
  

Identify Patterns

• Common mistakes help superviors decide on structural changes.pattern image by Peter Baxter from Fotolia.com
  
  If there are consistent employee errors, performance appraisals help supervisors decide methods to restructure the training or improve workplace tools, such as updating the technology. Performance reports enable supervisors to address steady employee concerns and improve the company in the long run. Completing reviews causes supervisors to becomes more aware of a pattern of negative issues and implement productive programs and policy changes.
  
  

Opportunity for Dialogue

• Performance appraisals give supervisors and employees a chance to build their relationships. Employees are given the time to communicate their strengths and any barriers to success. If supervisors acknowledge these, the employees may receive the resources and tools that can be used for optimal performance. Supervisors connect with employees and feel more at ease working with them.