Purposes of Performance Appraisal (Administrative Purpose) Performance appraisal programs benefit both the employee and the organization. Administrative Purposes -For the organization,performance appraisals provide inputs for many other HR functions.The concept of“pay-for-performance”has gained wide acceptance among employers. It is important to correctly administer performance appraisals as a key to the proper compensation of employees. Purposes of Performance Appraisal ( Administrative Purpose) Performance appraisal programs benefit both the employee and the organization. Administrative Purposes - For the organization, performance appraisals provide inputs for many other HR functions. The concept of “pay-for-performance” has gained wide acceptance among employers. It is important to correctly administer performance appraisals as a key to the proper compensation of employees