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Management's interaction with a Scrum Team

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How should a people manager interact with a Scrum team? If the presence of management is likely to cause team members from speaking or discussing freely, in reality, how are managers able to check the performance of their reportees or do performance appraisals? Does the Scrum Master have any ability to protect his team members from a manager who may affect the appraisal of one of the Scrum Team members negatively? (assume any hypothetical reason)

What is management by exception? Is this something that a Scrum Master can use? If so, under what circumstances?


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