Improving performance appraisal

Abstract

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings It has become something of a cliché to point out that a firm’s most important asset is its workforce. Yet in these increasingly challenging times, such reasoning remains as pertinent as ever. Human capital and the social networks that employees create are now viewed as key strategic resources. The more judicious companies clearly subscribe to this belief. Employee development is a top priority in the quest to secure and sustain a competitive edge over rivals. Despite this commitment, questions have been raised about the effectiveness of performance management. Most organizations tend toward the conventional approach whereby appraisals take place just once or twice a year. Under this system, the gap between reviews is a minimum of six months. Managers thus often struggle to properly address issues which do not occur close to these points. One significant consequence of this weakness is growth in the use of personal development plans (PDPs) as a viable alternative. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.