Performance appraisal is a systematic process of evaluating an employee's job performance and potential for development. It provides a basis for promotion, transfer, termination and career planning. The objectives of performance appraisal include identifying an employee's strengths and weaknesses, training needs, measuring organizational and individual efficiency, strengthening relationships between managers and employees, and providing feedback. The typical process involves establishing performance standards, communicating them, measuring actual performance, comparing it to standards, discussing results, and using results for decision making.