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A performance appraisal, or evaluation, is a managerial review assessing an employee's work performance, identifying strengths and weaknesses for improvement. New evaluation types focus on employee growth beyond raises and promotions. One successful method is Management by Objectives (MBO), which measures accomplishments against established objectives. By collaborating on objectives at the year's start, the end-of-year appraisal can compare each goal to its outcome, promoting clarity and employee empowerment. However, MBO overlooks non-goal-related success metrics. The rating scale remains a common review type in organizations.
