Performance appraisal is the process of evaluating an employee's work performance to help achieve organizational goals while also providing feedback and career guidance to employees. It involves systematically evaluating job performance to provide feedback, recognize contributions, and inform human resources decisions. Some key characteristics of performance appraisal are that it reassures employees, evaluates performance quality and timeliness, recognizes employee value, allows for self-development, and informs decisions around rewards, training, career planning, and talent management.