A Performance Appraisal Policy serves as a structured framework for evaluating employee performance in an organization. It outlines the criteria, methods, and frequency of performance reviews to ensure a fair and transparent assessment process. This policy helps align individual goals with organizational objectives, fostering professional growth and productivity. It typically includes key aspects such as performance metrics, feedback mechanisms, rating scales, and appraisal cycles. Additionally, it defines the roles of managers and employees in the evaluation process, ensuring constructive feedback and opportunities for improvement. A well-defined Performance Appraisal Policy enhances motivation, promotes career development, and supports decision-making related to promotions, rewards, and training needs.