Related Experiment Videos
Strategic issues in performance appraisal: theory and practice.
Personnel
|October 8, 1983
Summary
Performance appraisal systems are underutilized strategic tools in U.S. organizations. Companies often focus these systems on short-term goals and feedback, missing opportunities for long-term strategic planning and effective management.
Area of Science:
- Business Administration
- Human Resource Management
- Organizational Behavior
Background:
- Performance appraisal systems possess significant strategic potential for influencing employee behavior and corporate direction.
- These systems are integral to selection, training, career planning, and reward structures within organizations.
Purpose of the Study:
- To assess the extent to which Fortune 1300 corporations leverage the strategic potential of their performance appraisal systems.
- To identify current practices and limitations in the application of performance appraisal systems.
Main Methods:
- Survey of performance appraisal systems in Fortune 1300 corporations.
- Analysis of the linkage between appraisal systems and strategic planning, selection, training, and reward systems.
Main Results:
- Most organizations' performance appraisal systems are primarily focused on short-term objectives.
- The predominant use of performance appraisal systems is as a feedback mechanism, not a strategic management tool.
Conclusions:
- Strengthening the link between performance appraisal and long-term strategic planning can enhance organizational effectiveness.
- U.S. organizations largely underappreciate the strategic role of performance appraisal systems as a management tool.