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The video tutorial discusses performance appraisal, also known as performance review or evaluation, which is a method to regularly assess an employee's job performance and contributions to enhance future performance. It provides structured feedback and aids in critical decisions like bonuses, promotions, and terminations. The appraisal process is a shared responsibility between the employee and manager; while the manager leads the process, the employee's active involvement is crucial for fostering commitment to improvement. The tutorial will further explore AIHR's top five best practices for implementing successful performance appraisals.