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A performance appraisal is a managerial review of an employee's work performance, highlighting strengths and areas for improvement. Modern evaluations go beyond just raises and promotions, focusing on employee growth and development. One effective method is Management by Objectives (MBO), where managers and employees collaboratively establish goals at the beginning of the year. The year-end appraisal compares achievements against these objectives, fostering clarity and empowering employees. However, MBO may overlook success metrics not tied to specific goals. The rating scale is another common review type utilized in performance assessments.
