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A performance appraisal involves a manager reviewing an employee’s work performance to identify strengths and weaknesses, guiding areas for improvement. New review types have emerged to focus on employee growth beyond just raises or bonuses. One such method is Management by Objectives (MBO), which measures employee achievements against pre-established objectives. This collaborative goal-setting at the year’s start allows for straightforward end-of-year comparisons. While MBO is clear and empowers employees, it overlooks achievements not tied to specific goals. Additionally, the rating scale is a common appraisal method used in evaluations.
