This article explores the attitudes of human resource managers working in the Jordanian private and public organizations towards the functions of their performance appraisal systems, and to the ways in which performance appraisal systems are implemented. A self-completion questionnaire was the main data collection method used in this study. Data were collected from a randomly selected sample of 74 organizations (38 private and 36 public organizations) that have a separate and formal HR department. The study contributes empirical information about human resource management in a relatively under-researched region. Major research findings of this empirical study include that performance appraisal systems had a moderate impact on the four functions of performance appraisal systems. These functions were grouped as: (1) between-individuals comparisons; (2) within-individuals comparisons; (3) systems maintenance; and (4) documentation. The results of the study revealed that private organizations’ performance appraisal had significantly greater impact than their counterparts in the public sector on promotion, retention/termination, lay-offs, identifying individual training needs, transfers and assignments. This study also indicated that performance appraisals were conducted once a year, and the appraisee managers were primarily responsible for conducting performance appraisals. The study concludes within a set of recommendations for improved practice. Chief among these recommendations is that performance appraisal systems in the Jordanian context need to better serve the four functions of performance appraisals discussed in this paper and the need to include other than the appraisee's manager in the appraisal process.
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