Employee appraisals are designed to review an employee's performance over a set period of time, usually annually, and identify areas for improvement or development. The process aims to provide employees with a safe environment to give feedback and discuss their work in a constructive manner. Objectives set during appraisals should be Specific, Measurable, Achievable, Realistic, and Time-bound to promote employee development. While appraisals can impact salary, training, and career prospects, they must be handled sensitively to avoid demotivating employees and improve company loyalty.