Recency bias occurs when managers rate an employee based on their most recent performance, leaving out the whole picture. (Photo: Shutterstock)

Objectivity is the most important part of having an effective performance appraisal system. What you want is a system in which your top performers are recognized and then given opportunities to advance their skills. Meanwhile, rather than being discouraged, low performers should come out with the advice and motivation they need to improve. Unfortunately this isn't always the case.

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