Content area
Full Text
What does research say about performance appraisals? What suggestions have been made for improving the process?
Griffin and Ebert (2002) describe performance appraisal as the "formal evaluation of an employee's job performance in order to determine the degree to which the employee is performing effectively" (p. 216). The process of formally evaluating employees' performance through the use of performance appraisals is regarded as a staple of organizational management (Kreitner, 2007). Despite the popularity of performance appraisals as management tools, there is an ongoing debate among practitioners, academicians, and scholars regarding the true efficacy of performance appraisals. This article addresses some of the common issues raised in these debates by examining well-documented benefits associated with performance appraisals, common pitfalls experienced in performance appraisal systems, and suggestions for improving the overall appraisal process in organizations.
Positive Aspects of Formal Performance Appraisals
There is considerable agreement that performance appraisals can have positive implications for organizations (Pettijohn, Parker, Pettijohn, and Kent, 2001). In an aggregate sense, performance appraisals can help improve organizational effectiveness (Spinks, Wells, and Meche, 1999), particularly when attributes of the performance appraisal are directly linked to the objectives of the organization. At an individual level, providing feedback to employees related to their job performance can also have a number of potential benefits. For example, performance appraisals can enhance employee productivity (Jenks, 1991). Here are some other specific benefits associated with formal performance appraisals:
* Facilitate communication: Communication is an important factor affecting employee motivation in organizations. Thus, it is recognized as an important skill for managers and leaders in organizations (Kikoski, 1999). It has been suggested that performance appraisals can help reduce employee uncertainty, while promoting more effective communication between supervisors and subordinates (Spinks, Wells, and Meche, 1999; Wells and Spinks, 1999). Also, failing to provide feedback can have negative implications for employees (Thornbory and White, 2007). For example, the absence of feedback leaves employees to play a guessing game concerning whether to continue on the current path of workrelated behavior or to chart another course. The communication received through performance appraisal feedback is essential for encouraging employees to continue on a positive trajectory or to guide employees in improving problem areas.
* Enhance employee focus by promoting trust: The existence or the lack of...