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A performance appraisal is a managerial review of an employee’s work performance, identifying strengths and weaknesses to guide improvement. New evaluation methods focus on employee growth, not just raises or promotions. One effective approach is Management by Objectives (MBO), where employees and managers collaboratively set clear goals at the start of the year, allowing for straightforward comparisons of achievements at year-end. While MBO is empowering and clear, it does overlook non-goal-related success metrics. The rating scale method remains one of the most common types of performance reviews used today.
