I believe that the most important reason for appraising employee performance is development and feedback. Employee development and feedback is mutually beneficial for the employee and the employer. Constructive feedback to employees is critical in helping employees understand where they stand and how they can progress in their role or even in their careers. From the perspective of an employer, the investment in feedback and development can lead to improved company performance and higher productivity. Doing these feedback sessions routinely and giving growth opportunities shows employees that their growth and success is valued. This can lead to higher levels of employee engagement and loyalty to the organization