The document discusses performance appraisal, which is the systematic evaluation of an employee's job performance by a supervisor. Performance appraisals are used to understand employees' abilities and contributions, identify training needs, and make personnel decisions. They involve rating employees on criteria like quality, quantity, and timeliness of work. Effective performance appraisals include setting objectives, defining standards, designing the evaluation process, implementing evaluations, providing feedback, and taking follow-up actions to improve performance.