Developing a usable performance appraisal system

Animal organs and organ systems constantly adjust to internal and external changes through a process called homeostasis ("steady state"). Examples of these changes include regulation of the level of glucose or calcium in the blood or internal responses to external temperatures. Homeostasis requires  maintaining an internal dynamic equilibrium:

Self-esteem is intricately tied to our perception of competence and our ability to exert control over our lives. One of the primary sources of this perception is performance feedback — the ongoing evaluation of our actions in terms of success and failure. According to Franks and Marolla (1976), people derive self-worth from experiencing themselves as causal agents, capable of achieving goals and overcoming obstacles. This process nurtures a critical component of self-esteem: self-efficacy,...