How is the Performance Appraisal help in operational decision making?

Performance Appraisal helps in operational decision making in personnel management gives clues to management for effecting enhancements into selection procedures and placement of employees, assists in advising and directing the personnel department to implement and design appropriate training programmes for the betterment of worker performance. This guides employee development and motivates healthy competition among workers. It seeks to discover the potential for development in employees. This attracts good workers to the organization. Throughout the process of performance appraisal, the management gets a concept of the difficulties faced through employees. This seeks to calculate employee performance into a systematic manner.