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A performance appraisal system is a structured process used by organizations to evaluate employee performance, provide feedback, and support professional growth. It helps measure individual contributions against predefined goals, competencies, and expectations. A well-designed system promotes transparency, enhances productivity, and aligns employee efforts with business objectives. Performance appraisals typically include self-assessments, peer reviews, and manager evaluations, often conducted annually or semi-annually. Modern systems incorporate continuous feedback, goal tracking, and perfor