DECA+ Business Management and Administration Practice Exam 2025 – All-in-One Guide to Guaranteed Success!

Performance appraisals are a systematic way of evaluating an employee's job performance and overall contribution to the organization. They typically include assessments of various factors, such as quality of work, quantity of work, teamwork, and adherence to company policies. Performance appraisals provide a structured way to offer feedback to employees, identify areas for improvement, and set future performance goals. This method of assessment is essential in making decisions related to promotions, pay raises, training needs, and overall employee development.

The other options, while related to business performance and outcomes, do not serve the specific purpose of assessing individual employee performance. Surveys of customer satisfaction gauge how customers perceive a company's products or services rather than focusing on employee contributions. Financial statements reflect the overall financial health of the company, presenting data on revenue, expenses, and profitability, but they do not directly evaluate employee performance. Product sales figures indicate the success of products in the market but again are not a direct measure of how well an individual employee is performing in their role.