To make you people valued in your organization appraisal is necessary. It helps in motivating the employees to improve their performances. It is a way to encourage them to work for the common objective of the organization. It monitors them and keeps them encouraged towards their work. There are two types of appraisals one is formal set of appraisals which gives the employees true feedback of their performance and helps them to do the task assigned to them more effectively. And informal appraisals are when the employer provide the significant feed back to the employees after the meeting is over. From an employee perspective informal appraisal always works in a better way, because they feel connected to the company and it helps in building their relations