The main purposes of employee assessment are as follows:

☛ Identify employees who are eligible for salary increase.

☛ Generate data to take personnel decisions such as promotion, transfer and lay-off or termination decision.

☛ Determine the training and development needs of the employees.

☛ Validate the selection process.

☛ To measure whether standards laid down has been achieved by the employees or not.

☛ Estimate the future requirement of work force.

☛ Helps to recognize potential of promising employees.

☛ Performance appraisal also helps in motivating employees by providing feed back about their level of performance.