Performance appraisal is a method to evaluate an employee's job performance through judgments made by their manager. Over the past 20 years, companies have focused more on employee motivation and engagement, leading to a more holistic approach to performance management. Recently, performance management has evolved further with many companies moving away from hierarchies towards more equal work environments. This has resulted in performance management methods that gather feedback from multiple sources, known as 360-degree feedback. Management by Objectives focuses on using charts and data to determine performance, productivity, and other factors. While prioritizing profits over employee satisfaction, companies still aim to improve employee communication and relations by adapting leadership styles to changing situations.
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