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Performance appraisal

Performance appraisal evaluates a person or unit against relevant objectives and evidence, with feedback and decisions about development, recognition or accountability. It should distinguish controllable actions from external conditions and use an appropriate mix of outcomes, behaviours and longer-term capability. A narrow target can distort cooperation or learning. This human-performance meaning differs from quality appraisal costs, which concern testing whether products or processes meet standards.

Worked example

A manager’s review considers service outcomes, team development and cost control, explaining a centrally imposed asset charge rather than treating it as the manager’s own decision.

Common mistake

Do not confuse employee appraisal with quality-inspection cost or assume a single financial variance provides a fair overall assessment.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA APM Direct September 2026–June 2027
ACCA BT Direct September 2026–June 2027
ACCA SBL Supporting September 2026–June 2027
FIA FBT Direct September 2026–June 2027