THE EFFECTIVENESS OF PERFORMANCE APPRAISAL

Abstract

This study examined the effectiveness of an electrical engineering company’s performance appraisal practices and made recommendations for improving the system. The study was performed at ABB. A literature review was conducted to determine the possible requirements from performance appraisals. These requirements provided the input needed for constructing a self-administered questionnaire, which was used to solicit the views of ABB’s employees on performance appraisal. Appraisers and appraisees were asked which of the requirements identified from the literature review were important to them and to what extent the requirements were met by current performance appraisal practice. The survey showed that although employees believed in the concept of performance appraisal, the performance appraisal system at ABB was not well entrenched and was, therefore, ineffective. Appraisers and appraisees agreed that the two most important areas for improvement were performance appraisal training and the consistency and uniformity of performance appraisal practice across the organisation