“Performance appraisal” is a discrete, formal, organizationally sanctioned event, usually not occurring more frequently than once or twice a year, which has clearly stated performance dimensions and/or criteria that are used in the evaluation process. Furthermore, it is an evaluation process, in that quantitative scores are often assigned, based on the judged level of the employee‟s job performance on the dimensions or criteria used, and the scores are shared with the employee being evaluated. (Angelo S. DeNisi and Robert D. Pritchard, 2006)
For employers, performance appraisal of employees reveals actual capabilities of evaluated worker, which managers can use in organisation’s functioning in the future. However, that process of appraisal causes a lot of complaints from both employers and employees, provoking dissatisfaction, impacting on their personal comfort.
One of the most important factor is that the evaluation should be conducted as objectively as possible. Currently, there is a considerable number of methods that help employers to assess employees' performance. So it is essential to regard a few of them and to make some conclusions about dignities and weaknesses which both employers and employees can meet in practice.
Firms engage in the performance-evaluation process for numerous reasons. Managers may conduct appraisals to affect employee behavior through the feedback process or to justify some sort of human resource management action (termination, transfer, promotion, etc.). However, many other benefits may also accure from the information yielded by the appraisal. These benefits include increases in knowledge regarding the effectiveness of selection and placement programs, training and development needs,
References: Alexander, Diane M. (2006). “How Do 360 Degree Performance Reviews Affect Employee Attitudes, Effectiveness and Performance?” Schmidt Labor Research Center Seminar Paper Series. University of Rhode Island. Angelo S. DeNisi and Robert D. Pritchard. (2006) Management and Organization Review, pp. 253–277, pp. 1740-8776. Church, A. H. and Bracken, D. W. (June, 1997) “Advancing the state of the art of 360-degree feedback” Group & Organization Management. Cocanougher, B. A. and Ivancevich, J. M. (1978), “Bars performance rating for sales force personnel”, Journal of Marketing, Vol. 42, 87-95. Dassler G. (2004) Management of Human Resources Dorfman, Peter W., Walter G Drucker, Peter F. (1954) The Practice of Management Dubinsky, A Foot M., Hook C., (2002) “Performance Management and Appraisal”, Introducing Human Resources Management, No. 8. Thomas, S. L. and Bretz, R. D. Jr. (1994, Spring), "Research and practice in performance appraisal: Evaluating performance in America 's largest companies", SAM Advanced Management Journal, pp. 28-37. Wanguri, D. M. (1995) "A review, an integration, and a critique of cross-disciplinary research on performance appraisals, evaluations, and feedback: 1980-1990", The Journal of Business Communication, Vol. 32, pp. 267-293.