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Performance appraisal, also known as performance review or evaluation, is a method for regularly assessing an employee's job performance and overall contribution to the company, aiming to enhance that performance. It serves as a formal feedback mechanism and is essential for making key decisions regarding bonuses, promotions, and terminations. A key aspect of the employee appraisal process is its shared responsibility, involving both the employee and manager. While the manager leads the process, the employee's active involvement is vital for fostering the necessary buy-in to implement performance improvements effectively.