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ACCA Applied Knowledge · Business and Technology · Review and appraisal of individual performance

Which of the following is the main purpose of the appraisal interview in a formal appraisal system?

The main purpose of an appraisal interview is to let manager and employee discuss performance over the period and agree future objectives and development needs. It is a two-way, developmental conversation rather than a pay announcement, a disciplinary tool or a ranking exercise.

  1. ATo allow the manager and employee to discuss past performance and agree future objectives and development needsCorrect
  2. BTo announce the employee's new salary and remove any need for further discussion
  3. CTo collect evidence for disciplinary action against underperforming staff
  4. DTo compare employees with each other so that the weakest can be identified

Explanation

The appraisal interview is a two-way discussion that reviews performance against objectives, and agrees future targets and development. Using it only to announce pay or build a disciplinary case ignores its developmental purpose and does not encourage employee participation.

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