According to More and Miller, why is a performance appraisal necessary?

A performance appraisal is necessary primarily to allocate resources effectively and reward competent employees. This process involves assessing an employee's work performance and contributions to the organization, which is crucial for recognizing and reinforcing exemplary behavior and achievements. By identifying high performers, management can make informed decisions regarding promotions, bonuses, and other incentives, ensuring that deserving employees feel valued and motivated. This reflection not only helps in promoting a culture of recognition but also assists managers in aligning personnel assignments with organizational needs.

While improving employee morale, enforcing company policies, and training new hires are important aspects of HR management, they are secondary effects and benefits of performance appraisals. The core focus of appraisals is to evaluate performance and reward effectiveness within the team, thus making the allocation of rewards and resources the fundamental reasoning behind the necessity of performance appraisals.