A performance appraisal has three main objectives. Firstly, a performance appraisal needs to provide adequate and insightful feedback to each person about their performance, that is clearly understood by a third party. Secondly, a performance appraisal needs to serve as the blueprint for modifying behavior so that it produces more lucrative working habits. Lastly, a performance appraisal needs to provide accurate performance data that the managers can use to judge future job assignments and compensation.