Performance appraisal, or evaluation, is a systematic approach to recording observations and attitudes to assess employees’ performance and determine future allocations of rewards. Rewards can be in raises, promotions, or even job cuts. An employee usually attends an annual review with a manager/supervisor to discuss salary raises/discounts and employee performance. It is frequently said that “performance appraisal is one of the most dreaded events in an employee’s calendar,” more so than pay raises or being on the receiving end of a firing. “The context of the appraisal interview determines whether it will be perceived as threatening or encouraging by most employees.”
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