What purpose does a performance appraisal serve?

Human Resource Management (HRM) serves an overall purpose to ensure an organization can achieve success through its people. It is a strategic approach to the effective management of employees to help the business gain competitive advantage. The responsibilities fall into several major areas: staffing, compensation and benefits, and work design. Until recently, an organization’s human resources department was often considered as belonging towards the lower end of the hierarchy. However, increased recognition of the important role continues to change this perspective in both large and small organizations. It is HR’s responsibility to find, secure, guide, and develop employees whose talents and desires are compatible with the current and future needs of the organization.