The Dynamics of Effective Performance Appraisal: An Integrated Model

Abstract

This paper presents further exploration of the quest for accurate and effective performance appraisals. Attempts to design and implement more effective performance appraisal systems have led to some improvements in the mechanics of appraisal. The process of performance appraisal, however, often fails to live up to expectations. One factor contributing to the gap between expectations and experience is the relative lack of research on organizational context and the motivations of managers as determinants of appraisal outcomes. This paper presents an integrated model in which appraisal context is defined in terms of senior management concern, clarity of purpose, accountability and instrument adequacy. The impacts of these contextual variables on appraisal outcomes are mediated through their influence on the perceived validity of the appraisal process and self-efficacy assessments of managers who must conduct appraisals. Appraisal effectiveness is defined as a multidimensional set of outcomes, with the appropriate criteria depending upon the purpose of the appraisal. A distinction is drawn between judgment and rating behaviour and how each contributes to the perceived effectiveness of appraisals.