Performance appraisal is a structured process that businesses use to objectively evaluate the performance of their employees against predetermined goals, expectations and standards. It not only evaluates an individual’s past performance but also identifies areas for improvement and helps plan future development. The methods used in performance appraisals vary from business to business, but typically include 360-degree feedback, self-appraisal, peer review, direct supervisor evaluation and goal setting. By regularly implementing performance appraisals, businesses can ensure employee satisfaction and ultimately boost productivity and success.