The document discusses performance appraisals, which [1] provide data to assess employee skill levels and performance, impact human resource planning and compensation, and require an effective appraisal system. [2] Performance appraisals are used to identify staffing deficiencies, detect inaccurate information, make placement and compensation decisions, and diagnose job design errors. [3] Effective performance appraisal systems are valid, reliable, involve employee input, have acceptable standards and goals, and use multiple raters.