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The essentials of an effective performance system are as follows:
Documentation – means continuous noting and documenting the performance. It also helps the evaluators to give a proof and the basis of their ratings.
Standards / Goals – the standards set should be clear, easy to understand, achievable, motivating, time bound and measurable.
Practical and simple format - The appraisal format should be simple, clear, fair and objective. Long and complicated formats are time consuming, difficult to understand, and do not elicit much useful information.
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