Performance Appraisal and Performance Management

Abstract

One of the biggest management challenges is how to deploy the most effective appraisal system that employees trust. Performance appraisal is critically important because it determines an employee's career path within the organization such as rewards, promotions, and ultimately, retention. Performance management can both achieve the goals of providing useful information for efficient administration and a tool for employee development. Integrating the social context into performance management is equally important. But adopting a “One size fits all” approach can be risky. How can an engineer and a janitor be measured with the same metrics? Should performance appraisals occur more frequently? What is the role of the rater? Are performance appraisals still needed today? Using a literature review, this chapter explores the intricacies involving performance appraisal within the performance management system in organizations.