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A Critical Examination of Performance Appraisals: An Organization's Friend or Foe?

Summary: In response to the ongoing debate about the efficacy of performance appraisals, the authors look at some of the issues raised by examining associated benefits, as well as the pitfalls often encountered. Suggestions for improving the appraisal process are discussed. Some of the benefits include improved communication, the promotion of trust, reinforcement of desired behavior, and determination of training needs. Conversely, drawbacks may include a negative impact on quality improvement, errors, and legal issues. The effectiveness of the formal performance appraisal system can be improved by providing training for the raters, the use of behavior-based methods, and providing ongoing feedback from multiple raters. Additionally, organizations should integrate continuous appraisal of employee performance into the culture of the organization where feedback is seen as a function of quality improvement.

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  • Topics: Human Resources, Career Development
  • Keywords: Performance appraisals, Performance management, Employee relations, Feedback, Goals, Organizational culture, Human relations, Human resources (HR), Behavior modification
  • Author: Schraeder, Mike; Becton, J. Bret; Portis, Ron
  • Journal: Journal for Quality and Participation