Performance Appraisal Reappraised: It’s Not All Positive

Abstract

Performance appraisal is a widespread, very expensive, counterproductive exercise. It is typically conducted with good intentions to manage and improve the performance of individual employees, and lead to enhanced overall organizational efficiency, effectiveness, and productivity. Unfortunately it is an exercise in futility. This paper explores why formal performance appraisal and performance pay fail in their objectives as components of an organization’s performance management program, and why they should be abolished.

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