Final answer:
Comparative analysis benefits businesses by aiding in performance evaluation of employees and departments, while adjustments may be necessary to tailor appraisal systems to an organization's culture.
Step-by-step explanation:
Comparative analysis is a valid approach that aids in evaluating performance within businesses. It can be applied to both employees and departments to gain insights into their productivity and effectiveness. While individual performance appraisals can be subjective and sometimes inflexible, incorporating feedback and the subtleties of an organization's culture, as suggested by researchers like DeNisi & Kluger and Fletcher, can make them more applicable and motivational. In addition, comparative analysis can uncover insights that are not immediately obvious, establishing a significant common thread for development and improvement.