Conducting Effective Performance Appraisals Performance appraisal is considered a key tool for the managerial needs of today's organizations. Performance appraisal is the process by which organizations evaluate job performance. Typically a performance appraisal system requires a manager to evaluate each employee's performance against already established performance criteria over a period of time. Performance appraisal systems also provide a basis for planning improvement as well as a means for determining merit raises, transfers, and even layoffs. According to Berkeley policy and procedures, the purpose of performance evaluation is to be able to measure and improve individual and institutional performance, and in turn ensure professional and career growth, determine merit increases, and meet demands internal and external documentation of individual performance. Performance evaluations are intended to encourage open communication between employees and supervisors. As a result, it provides an understanding of employee job responsibilities, a supervisor's performance standards, and an employee's progress in his or her job responsibilities. Performance appraisal is very important for employees because some type of feedback is necessary for employees to be aware of how well they are doing their job or, conversely, to be informed of the areas in which they need improvement. Feedback is one of the most important factors supporting a high level of performance. Without performance evaluations or feedback, employees have no way of knowing if they are doing a good job or if there are some areas where they need to improve (F...... middle of paper ...... ine. Available : http://www.sasknetwork.gov.sk.ca/pages/tw/d121.htm.Bartley, Douglas L. Job Evaluation Company, Inc. Reading, Massachusetts 1995.Cohen, Steven and William Eimicke effective Jossey-Bass Publishers 1995. Fournies, Ferdinand F. “Employees Don't Do What They Should Do Because They Think They Are When They Really Are Not.” Available online: http://www.gmp1st.com /mntp0798.htm.Heathfield, Susan M. “Performance Appraisals Don't Work Human Resources (6/11/00). http://humanresources.about.com/careers/humanresources/library/weekly/aa061100a.htm.Henemen , Robert L. Linking Pay Increases to Performance Evaluations Addison-Wesley Publishing Company, Inc. Reading, Massachusetts 1992.