Of all activities counted in Human Resource Management (HRM), appraisal management is one of the most contentious and not accepted among those who are involved: managers don't like doing it and employees see no added point in it. But in recent years, performance appraisal has become a key tool advantaging through performance improvement and change. It comes through downsizing, decentralization, de-layering, flexibilities of the workforce, move to team-working, the culture change program, new managerial initiative and new payment systems, such as integrated reward system and merit- and performance-based pay, that have fueled the growth and development of performance appraisal. The performance management seems to largely contribute to achieve organizational objectives and stimulated considerable experimentation and innovation in its practice.
Today, new form of appraisal emerge, such as competency-based appraisal systems, staff appraisal of managers, team-based appraisal, customer appraisal, and finally the famous 360° appraisal system.
Based on Redman et al. and Bratton et al. approaches, I will try to answer to the question asked by giving many theoretical elements composed as follow; in the first part, I'll give a brief explanation about the history and current practice of performance appraisal such as terminology, development, practice and use. Then, I will move towards the innovation in the practice of performance management, such as the systems, tools and rating methods.
Finally, I will critically conclude by exposing the issues that this kind of management brings. Then I will be able to present a critical evaluation of performance management adapted to a large retailer situation.
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