Abstract
In this two‐part article the problems of operating employee appraisal schemes effectively are identified. Appraisal of formal appraisal schemes suggests that most do not operate satisfactorily. Multi‐purpose 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 appraisal according to their complexity and the role conflicts they can 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. Competencies developed for selection purposes may be usefully applied in appraisal, provided they are accurate. The crucial link between formal and informal appraisal processes is considered as is the importance and skills involved in informal appraisal. Finally, the way in which the training needs of appraisees need to be realistically identified and assessed is explained.
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