Is performance appraisal important in an organization?

The performance appraisal is an essential part of the human resources department's contribution to an organization. An effective appraisal may not only eliminate behavior and work-quality problems, it can motivate an employee to contribute more. Often, a company will ask its employees to perform "360-degree feedback" that assesses peers and subordinates as well as supervisors and management. Regardless, the opportunity to receive -- and give -- constructive criticism shouldn't be ignored.