Why performance appraisal is necessary in divisionalized concerns?

Performance appraisal is essential in divisionalized concerns because it ensures accountability and alignment with organizational goals across different divisions. It helps identify individual and team contributions, fostering motivation and development. Additionally, regular appraisals facilitate the identification of best practices and areas for improvement, enabling divisions to optimize performance and resource allocation. Ultimately, effective performance appraisal supports strategic decision-making and enhances overall organizational effectiveness.