The Wiley Blackwell Handbook of the Psychology of Training, Development, and Performance Improvement

22Performance Appraisal and Development

Jeffrey R. Spence and Patricia L. Baratta

Introduction

Many organizations utilize a formal performance appraisal system where once or twice a year employees are evaluated on predetermined dimensions of performance (DeNisi & Pritchard, 2006; Seldon, Ingraham, & Jacobson, 2001). The expectations of employee performance appraisals can be presented in a deceptively simple manner: (a) performance ratings are expected to be accurate and (b) the performance of those being rated is expected to improve on account of being evaluated and given feedback. Within this simple breakdown, performance appraisals can be seen to possess the properties of a Janus head, having multiple faces within organizations. Traditionally, appraisals had a face of allocating rewards and recognition to employees, but have more recently been recognized as a tool for employee motivation, legal defense for selection tools, and strategic planning at the organizational level (Woodford & Mayes, 2002). Performance ratings can also be the focus of litigation and have their veracity challenged in court (Arvey & Murphy, 1998; Bernardin & Tyler, 2001; Werner & Bolino, 1997). The great conundrum of appraisals is that they are needed to fulfill a number of important personnel and organizational needs, yet they have a reputation for being futile (Bowman, 1994). The negative view of performance appraisals is not restricted to academic circles. A recent survey of human resource professionals ...