Performance Appraisals: To Go Or Not To Go?. Introduction.

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Performance Appraisals: To Go or Not to Go?

Performance appraisals (PA) have long been considered fundamental to the organisational effectiveness of human resources (Yee & Chen, 2009). However, a macro shift towards a knowledge-based economy, the advancement of technology, and generational workforce changes, have prompted an evolution of the traditional PA practise. The purpose of this literature review is to highlight the reasons why traditional PA practices are inadequate and unfulfilling for today’s millennial employees. Firstly, an overview of the traditional PA process will be presented followed by a discussion regarding the drawbacks of PA. The literature review will then discuss millennials and PA, followed by research …show more content…

There are many different systems used for PA purposes, which can be categorised as either comparative or absolute. With most systems requiring the supervisor to rate the employee via methods such as ranking, forced distribution, or behaviour checklists, in addition to alternative methods, such as 360-degree appraisal and management by objectives (Yee & Chen, 2009;Aguinis, Performance Management, 2014). A relatively formal occasion, PA are typically conducted biannually or annually (DeNisi & Pritchard, 2006; O 'Boyle, 2013), and generally include a formal meeting between a manager and their direct reports (Zheng, Zhang, & Li, 2012). It is during these periodic meetings that the focus falls on identifying the strengths, weaknesses, successes, and failures, demonstrated by the employee throughout the review period, as well as any relevant opportunities, or threats present (DeNisi & Pritchard, 2006; Payne, Horner, Boswell, Schroeder, & Stine‐Cheyne, 2009; Zheng, Zhang, & Li, 2012). The PA meeting will include discussion of future employee goals and objectives, as well as the need for further training and development. Finally, the outcome of an employee’s PA allows for other administrative decisions to be made. For example, some organisations use PA as a basis of measurement to determine bonus payments, pay rises, promotions, and termination of employment (Davis, 2011;

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