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a performance appraisal or evaluation as it is sometimes called is a review by a manager where the employees work performance is evaluated and strengths and weaknesses are identified so that the employee knows where improvement is needed over the years there have been some new types of reviews that are being met with success in todays business world these require that evaluations be done not only for raises promotions or bonuses but for an employees growth and development these include management by objectives review this method often called MBO measures the employees accomplishments against a clearly established set of objectives if managers and employees begin the year by working together to list these objectives the end of your appraisal can simply compare each goal with its final outcome this method is simple clear and empowers employees in the goal-setting process but it disregards non goal related success metrics rating scale is probably the most common review type using this m