Evaluating Organizational Uses of Performance Appraisal System: A Conceptual Analysis and Framework for the Future (Published)
Organizational effectiveness and efficiency may be realised when employees are frequently assessed. While performance appraisal and organisational effectiveness has gained attention among scholars, there are little studies on the specific uses performance appraisals or media through performance appraisal exercises improve corporate effectiveness. In this light, this study examines organisational uses of appraisal systems. To address the research aim, thematic literature review approach is employed to assess the organisational benefits or uses of performance appraisal results. The study finds that employee performance appraisal results are used by organisations as an instrument to enhance employee motivation, improve corporate communication, facilitate employee training and development and boost overall corporate success or effectiveness. The study therefore recommends that organisations must not see employee performance appraisal as just an annual activity but recognise it as a continuous activity and an important resources that can provide enormous benefits to enhance the success of the organisation. By these findings the study contributes significantly to knowledge by developing a model of performance appraisal outcomes. The model shows the mechanisms through which performance appraisal practices positively affect organisations and also for empirical testing particularly in developing countries’ contexts.