Performance appraisals assess employees' job performance in a systematic way to promote development. They measure factors like job knowledge, quality and quantity of work, initiative, and health against past and potential performance. Performance appraisals aim to facilitate promotions, confirmations, training, compensation reviews, competency building, improved communication, and evaluation of HR programs through feedback. The process involves defining appraisal objectives, establishing job expectations, designing an appraisal program, appraising performance, conducting interviews, using data for its purposes, and identifying variables with various forms of assistance. While traditional methods focus on past performance, modern approaches evaluate future potential.