A performance appraisal system is a structured process used by organizations to evaluate employee performance, provide feedback, and guide professional development. It helps employers assess individual contributions, set goals, and identify areas for improvement. By using standardized criteria, such as productivity, teamwork, and job knowledge, companies can ensure fair evaluations. A well-designed appraisal system enhances motivation, boosts employee engagement, and aligns individual efforts with organizational objectives. It may include self-assessments, peer reviews, or manager evaluations, often conducted annually or semi-annually. Modern appraisal systems integrate technology to streamline the process, offering data-driven insights and continuous feedback mechanisms. Effective implementation fosters transparency, strengthens employer-employee relationships, and supports long-term career growth.

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