The best use of performance appraisals is to:

The primary purpose of performance appraisals is to improve performance, making it the most fitting answer. By systematically evaluating an employee's work, strengths, and areas needing development, both the employer and the employee can identify specific goals and strategies for enhancement. This process promotes growth and guides the employee in aligning their work more closely with organizational objectives.

While motivation plays a role in performance appraisals, it is not the principal focus; rather, motivation may be a byproduct of improving performance through constructive feedback and support. Similarly, weeding out underperforming employees or providing rewards are outcomes that can stem from appraisals, but these are secondary to the assessment’s main aim of fostering continuous improvement. Focusing on improvement fosters a culture of learning and development that benefits both the employees and the organization as a whole.