Abstract

The problems of operating employee appraisal schemes effectively are identified in this two‐part article. Appraisal of formal appraisal schemes suggests that most do not operate satisfactorily. Multipurpose schemes can be cumbersome and include conflicting objectives. The feedback process can also cause major problems. Such problems can be exacerbated with schemes of 360‐degree appraisals, according to their complexity and the role conflicts that they precipitate. In the second part of the article, the level of organisational investment needed for schemes to operate effectively is considered. The ways in which competencies, self‐appraisal and peer audit can be constructively used are examined. The crucial link between formal and informal appraisal processes is considered as is the importance and skills involved in an informal appraisal. Finally, the way in which the training needs of appraisees need to be realistically identified and assessed is also explained.

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