The main objectives of a performance appraisal system are: 

1. To increases the employee effectiveness by helping them understand their role better. 
2. To help the employees understand their STRENGTHS and weakness in the current role. 
3. To help the managers in identifying the training needs of their subordinates. 
4. To improve the relationship between the line manager and his team members by making them realize that they are dependent on each other for better performance. 
5. To help the line managers and their team members in improving the communication by discussing the problem in achieving the targets and finding the POTENTIAL solutions. 
6. To provide the employee an opportunity for self evaluation and self development which are important to achieve the goals. 
7. To prepare the employees for higher roles. 
8. To create a positive work atmosphere. 
9. To collect the information about each employee through personal MEETING which is USEFUL in making managerial decisions.

The main objectives of a performance appraisal system are: