What does the performance appraisal not influence?

The performance appraisal primarily assesses an employee's work performance, providing a framework for evaluating aspects such as recognition of quality performance, improvement in productivity, and personnel actions such as promotions or demotions. These appraisals play a significant role in how organizations identify high-performing employees and where improvements are needed.

However, employee hiring procedures are typically established before an employee is reviewed through performance appraisals. Hiring decisions are made based on the qualifications, skills, and experience of candidates prior to their employment, rather than an evaluation of their performance, which happens later. Thus, performance appraisals do not influence the hiring process, as they assess existing employees rather than informing recruitment decisions for new hires.