Current US trends in formal performance appraisal: practices and opportunities – Part II

Abstract

Purpose – The purpose of this two-part paper is to explore the current practices being employed in the formal performance appraisal process in a cross-section of US service and manufacturing organizations. In this paper, the authors identify the current trends that emerged from this research study and the improvement opportunities that exist for organizations that currently engage in the practice of formally appraising their personnel. Design/methodology/approach – The formal performance appraisal process, procedure, and rating form from 183 US organizations were reviewed by a three-person review panel and were content analyzed to identify current trends and opportunities for improvement. Findings – This qualitative analysis revealed that the average rating procedure had been in place for 5.5 years, to serve a wide variety of purposes, identified critical gaps in training, made it clear that organizations employ a wide variety of performance criteria in assessing their people. Research limitations/implications – The biggest limitation of this research is the fact that a convenience sample of 183 organizations was employed as the basis for this study. Practical implications – Data on the actual formal performance appraisal process of organizations is rather limited and this research provides critical insight into current practice limiting potential generalizability. Social implications – The social implications of this research suggests that organizations can do a much better job of equipping their leaders/employees to more effectively reap the organizational benefits of this key practice. Originality/value – Research in this area is not prevalent so this is a descriptive research study that both researchers and organizations can use to further their knowledge in formal performance appraisals.