For a business to be successful employees need to understand how they are doing and how their performance contributes to the strategic goals of the business. Developing an appraisal system that ties directly to the business goals is critical to keep a company moving forward.

There are several different ways to provide the feedback people need. What system works best will depend on many factors, such as the size of the company, the needs and goals of the business, and the structure of the organization. Here are some factors that need to be considered.

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