What is the purpose of performance reviews in an organization?

The purpose of performance reviews in an organization is primarily to assess employee performance and identify learning needs. This evaluation allows managers to understand how well employees are meeting their job responsibilities and achieving their targets. Through performance reviews, organizations can gather valuable insights into an employee's strengths and areas for improvement. This information is essential not only for the development of the individual employee but also for the overall growth and success of the organization. Identifying learning needs during these reviews helps in creating targeted training and development plans, enabling employees to enhance their skills and performance.

While aspects like enhancing profits, providing salary increases, or organizing team-building exercises may be indirectly influenced by the performance review process, they are not the fundamental purpose. The primary focus remains on evaluation and development, making performance reviews a critical tool in fostering a supportive work environment conducive to personal and organizational growth.