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Performance Management

Performance Appraisal

A formal evaluation of an employee's performance against objectives and competencies.

Full Definition

A performance appraisal is a formal, structured evaluation of an employee's work performance, typically conducted annually or bi-annually. The appraisal assesses achievement of objectives, demonstration of competencies, and overall contribution to team and organizational goals. Appraisal outcomes inform pay review decisions, promotion recommendations, and development planning. Modern performance management platforms enable continuous feedback loops, 360-degree reviews, and real-time goal tracking to supplement or replace the traditional annual appraisal.

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