Rethinking Performance Appraisal

Abstract

The task of assessing the job performance of their staff is one of the least-likedtasks that managers can be asked to carry out each year. Despite significantinvestments by most large and many medium-sized organizations in developingperformance appraisal systems, the appraisal process rarely seems to deliver thepromised improvements in communication, employee motivation and jobperformance. This paper examines the confused nature of the 'overallperformance' rating that typically is the culmination of the appraisal processand the basis for determining salary adjustments and other rewards. It is arguedthat appraisal systems are more likely to deliver their promised benefits if theyfocus upon assessing the extent to which managers, subordinates and othersare initiating and implementing actions that enhance individual capacity andmotivation (i.e. potential') and the opportunities and support available in thejob for individuals to fully realize theirpotential to contribute to strategic objectives(i. e. job 'scope').