The dilemma of performance appraisal

Abstract

Purpose

This paper aims to evaluate the aims and methods of appraisal, and the difficulties encountered in the appraisal process.

Design/methodology/approach

The paper uses a review of the literature to evaluate the development of appraisals and argues that the critical area of line management development that was identified as a critical success factor in appraisals has been ignored in the later literature evaluating the effectiveness of performance appraisals.

Findings

The review identifies the lack of theoretical development in appraisal and argues the psychological approach of analysis and a more critical realisation of appraisal, re‐evaluating the challenge to remove subjectivity and bias in judgement of appraisal.

Research limitations/implications

Further evaluation of key interpersonal skills is required for appraisal systems to develop performance.

Practical implications

The use and design of performance pay in public and private services linked to appraisal have not always improved organisational performance and can contribute to reduced motivation.

Originality/value

Little research has evaluated the current increases in using appraisals and the changes in focus from appraisal to performance management. The paper adds value to the existing body of knowledge and offers insights for practitioners and researchers.

Citation

Prowse, P. and Prowse, J. (2009), "The dilemma of performance appraisal", Measuring Business Excellence, Vol. 13 No. 4, pp. 69-77. https://doi.org/10.1108/13683040911006800