Do you think performance appraisal should be done? Is it worth the cost? Discuss.

Introduction:
Performance Appraisal is the process whereby the HR Department procures analyzes and document facts about the performances of the employees of the organization. These processes are usually done annually. As described by Margaret Francis
"Performance appraisals provide a formal, recorded, regular review of an individual's performance, and a plan for future development. In short, performance and job appraisals are vital for managing the performance of people and organizations." ls are important for staff motivation, attitude and behavior development, communicating organizational aims and fostering positive relationships between management and staff.

Definition:
Performance appraisal being one of the developmental activities under the HR functions is in organizations defined by Amstrong 2006 as the as the formal assessment and rating of individuals by management at usually an annual meeting. Gomez et al 2007 also defines it as the identification, measurement and management of human performance in organisations.
Cost

Determining the Different Kinds of Costs involved in appraisal performance

When talking about the cost of something like performance appraisals, to get an accurate sense of value/cost, one needs to understand a few things.

First, there are actual out of pocket costs. Those are costs that somebody actually has to pay in real money. For example, if a company licenses a performance appraisal software suite at $2,000 dollars a year, it actually pays that every year. It has $2,000 less in actual cash every year. We'll call those "real costs".

Second, there are fixed costs. A fixed cost is something you have to pay and does not vary with how you use something. For example, if you drive to work you pay insurance every year, but you pay it