Seven biggest problems with performance appraisals: and seven development approaches to rectify them

This paper aims to highlight the common failures of performance appraisals and describe how training can help overcome these failures. Further, to propose some practical strategies on maximizing the effectiveness of appraisal systems.

The paper is based on, and is a synthesis of, a comprehensive literature review of over 300 articles published between 1980 and 2010.

The design, management and implementation of performance appraisals have been hampered for many years by several common strategic and operational mistakes. Training and learning has a big role to play in addressing these mistakes and improving appraisal outcomes for individuals and organizations.

Organizations invest a great deal of time and money every year into conducting employee performance appraisals. However, they are missing simple opportunities to get more value from the process and increase the integrity of their appraisal systems. Organizations can adopt the strategies presented here to improve practice.

This paper provides a summary of an exhaustive literature review covering 30 years. It succinctly highlights several major problems with appraisals and provides practitioners with realistic strategies they can introduce to their organizations.