Andrew Dubrin gives the following advantages of performance appraisal:-

1. It assists managers to observe their subordinates more closely and do a better job of coaching.

2. It motivates employees by providing feedback on job performance.

3. It achieves better operational results and improved work performance.

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4. It provides information on human resource planning by identifying individual contributions and managers with potential for assuming additional responsibility

5. It identifies developmental needs which can then be used in selecting appropriate programmes for training and development.

6. It provides back up data for making decisions about employee compensation.

7. It reduces favouritism in making managerial decisions about employees.