Literature available indicates that a lot of researches have been conducted on performance
appraisal. However, for this study, this literature review is focused on performance management,
performance appraisal in general, the history of performance appraisal, consequences of appraisal,
design of appraisal system, effective appraisal system, training of appraisers, appraisal feedback
2.1 Performance management
Maximizing performance is a priority for most organizations today, (Mathis et al, 2004). Every
employer desires that his employee does his or her job well and this can be achieved through
According to Aguinis (2007), performance management is a continuous process of setting goals and
objectives, identifying, measuring and developing the performance of individuals and teams and
aligning performance with strategic goals of the organization. From the above definition, it is
important to emphasize that, performance management is not static but an ongoing process in order
not to deviate from organization 's goals and objectives. It also means that performance needs to be
reviewed at every stage of the performance process so that corrections can be made instantly.
Performance management is also concerned with improving not only the performance of the
individual, but also the performance of the team and the organization so that the aim of the
organization will be achieved. In a statement by Armstrong and Baron (1998) as cited in Foot and
Hook (2005), performance management is a devise or tool to ensure that mangers do manage
human resources effectively. The writers continued to explain that managers should ensure that the
employees or teams they manage know and understand what i...
... middle of paper ...
...ing future management
ii. Performance improvement – assists organizations in increasing performance and overall
productivity. It works towards identifying strengths and managing weaknesses.
iii. Feedback – it provides clarity to employees about an organization’s expectations
regarding performance levels.
iv. Human resource planning – provides an opportunity to audit and evaluate current human
resources and identify areas for future development.
In many appraisal schemes, staffs receive an annual appraisal and for many organizations this may
be sufficient. However, the frequency of appraisal should be related to the nature of the
organization, the purpose and objectives of the scheme and characteristics of the staffs employed
(Mullins, 2002). Drawing from Mullins view, it is important for organizations to determine the
frequency of its appraisal programme
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