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Today's tutorial focuses on performance appraisal, outlining what it is and how to effectively implement it using AIHR’s top five best practices. Performance appraisal, also known as performance review or evaluation, is a method for regularly assessing an employee's job performance and contributions to enhance that performance. It serves to provide essential feedback and is a formal occasion for evaluating job performance. Performance appraisals are critical for making key decisions regarding bonuses, promotions, and termination. A key aspect of the process is that it is a shared responsibility; while the manager leads, active involvement from the employee is essential for fostering commitment to improvements.